URC sets sights on volume, market share recovery
UNIVERSAL ROBINA CORP. (URC) is targeting volume and market share recovery this year, its president said.
“We’re looking very much forward to a strong volume recovery and market share recovery,” URC President and Chief Executive Officer Irwin C. Lee said during the Money Talks with Cathy Yang program on One News Channel on Wednesday.
In 2023, URC’s net income fell 2% to P12.5 billion due to lower profit from its sugar and renewables segment. Sales, however, grew 3% to P161.9 billion on higher volume across all divisions.
Mr. Lee said the company will focus on expanding its Philippine business, which accounts for over 70% of revenue, while strengthening its presence in Southeast Asia.
“Our businesses have been very strong in all the ASEAN countries. We’ve seen high single-digit to double-digit growth in Malaysia, Thailand, Vietnam, and Indonesia. The Philippines has been more of a drag, but now we’re seeing a bit of a turn. Cautious optimism is growing, and sentiments are improving with inflation easing slightly,” he said.
“We will devote significant attention to the Philippines, sustain growth momentum in ASEAN, and drive volume recovery in the country,” he added.
Mr. Lee also said URC’s exit from the China market will be completed this year.
“We’re well on track. We’ve made all necessary announcements in China, and we’re working with regulatory authorities. The wind-down process is ongoing and will likely take the rest of the year to complete. China was not a major operation for us,” he said.
In August last year, URC announced its exit from China, where it produces cereals and snacks. The company said the move would allow it to redeploy resources to higher-growth markets in the region.
Meanwhile, Mr. Lee expects an income boost from the May midterm elections.
“Elections have always provided a lift for us. We’re, of course, banking on some of that lift this year,” he said.
On Wednesday, URC shares rose 2.15% or P1.60 to P75.90 apiece. — Revin Mikhael D. Ochave
