Universal Robina Corp. (URC)’s attributable profit dropped by more than a third during the second quarter of 2018, taking a hit from the weakening of the peso as well as the depreciation of local currencies of its international subsidiaries.
In a regulatory filing, the Gokongwei-led food and beverage company reported net income attributable to equity holders of the parent reached P1.86 billion, 35% lower than the P2.88 billion it realized in the same quarter a year before.
On a six-month basis, URC’s attributable profit slumped 23% to P4.81 billion.
The listed firm attributed the profit decline to lower operating income and foreign exchange gains. URC said net foreign exchange gains declined by 77% “due to the combined effects of depreciation of international subsidiaries’ local currencies and Philippine peso vis-à-vis US dollar.”
Revenues meanwhile went up by 10% to P33.18 billion during the second quarter, and up 5.89% to P64.37 billion for the first half.
“We are pleased with our overall sales growth momentum, and are working hard to address the short term challenges to profitability brought about by peso devaluation and inflationary pressures,” URC President and Chief Executive Officer Irwin Lee said in a statement. — Arra B. Francia