(Screenshot from URC website)
MANILA – Listed food manufacturer Universal Robina Corporation (URC) announced Friday that it ceased manufacturing and sales operation in China, targeting to fully exit the Chinese market next year.
In a disclosure to the Philippine Stock Exchange, URC said its exit from the Chinese market is a strategic move as this will allow the company to reallocate its resources to faster-growing markets in Asia.
URC operates cereals and snacks businesses in China.
“This will allow URC to redeploy resources to higher-growth markets across the region,” URC said.
The Filipino company is present in Hong Kong, Indonesia, Malaysia, Myanmar, Singapore, Thailand, and Vietnam.
URC reported sales of PHP80.7 billion for the January to June 2024 period, an increase of 3 percent from the same period last year, with all business units showing higher sales volumes.
Operating income grew by 10 percent to PHP9.4 billion, driven by easing commodity costs and strong results from cost-saving programs.
Net income from continuing operations rose 8 percent to PHP7.6 billion, while core net income increased by 5 percent to PHP6.7 billion, with higher tax provisions offsetting operating income growth.
"Against a challenged macroeconomic landscape, URC delivered volume-led growth and strong profits. The strength of our wide portfolio allows us to continue delighting our consumers with good food and beverage choices, while also enabling us to reward shareholders with steadily increasing dividends,” URC president and chief executive officer Irwin Lee said.
“We look forward to the continued recovery of consumer sentiment in the balance of the year." Lee added.
Meanwhile, the company also announced its second dividend for the year, declaring a PHP1.90 per share dividend to stockholders on record as of Aug. 30, 2024, with payout set on Sept. 25, 2024.
URC has increased its annual dividend per share by 5 percent over the past four years. (PNA)
