Stock News 2012: Universal Robina eyes new acquisitions

Universal Robina (Photo credit: Wikipedia)
Gokongwei-led food and beverage firm Universal Robina Corp. is exploring potential targets in the snacks and confectionery business as it eyes opportunities for growth and expansion, according to a top company official.

BJ Sebastian, senior vice-president and chief strategist at URC, said the company intends to further strengthen its commanding position in the snack food industry through acquisitions.

He said the firm is also looking to beef up its beverage business but declined to give more details.

Sebastian refused to comment whether these planned acquisitions involved domestic or international brands.

Funding for the planned acquisitions, will come from proceeds of a recently concluded sale of treasury shares. URC raised P7.4 billion from the offering of 120 million common shares previously held as treasury shares at P62 each share.

URC, the country’s snack foods giant, markets well-known products such as Chiz Curls, Potato Chips, Chippy, Piattos, V-Cut, Taquitos, Mr. Chips, Tostillas, Tortillos, Spuds and Sea Crunch, all under the Jack n’ Jill brand.

URC is also the dominant market leader in candies, chocolates, biscuits, cup noodles and tea beverage.

The company is a trendsetter in the beverage industry with its coffee and ready-to-drink products. It grew the local non-carbonated beverage market with the successful launch of C2 Cool & Clean Green Tea, building on the global trend towards health and wellness.

URC later forayed into other areas of the non-carbonated beverage market, such as juices, energy drinks, and ready-to-drink coffee, among others.

Founded in 1954 by its chairman, Taipan John L. Gokongwei Jr., URC has been the aggressive and innovative frontrunner in the snack food industry, making it the leading snack food supplier to supermarkets in the Philippines.

The company’s products are available in the Philippines, China, Indonesia, Malaysia and Thailand. Plans are now underway to set up shop in Burma as it expects international operations to grow as big as its domestic business in five years.

http://www.philstar.com/Article.aspx?articleId=818248&publicationSubCategoryId=66

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Stock News 2012: JG Summit profit soars 77% to P4.91 billion

Universal Robina (Photo credit: Wikipedia)
JG Summit Holdings Inc., the investment vehicle of taipan John Gokongwei, said its net earnings grew 76.7 percent in the first quarter to P4.91 billion, boosted by a dividend income from its investment in Philippine Long Distance Telephone Co. (PLDT) as well as higher mark-to-market gains.

Consolidated revenues went up 13.9 percent to P33.48 billion, mainly driven by the strong performance across all business units, the company said in a statement.

The food business contributed P18.2 billion to total revenues, up from P16.74 billion. The airline business, through Cebu Pacific, chipped in P9.34 billion while property pumped in P3.35 billion. Petrochemicals contributed P1.38 billion while banking pitched in P709.96 million.

Dividend income from its PLDT investment amounted to P1.9 billion.

Core earnings before tax increased 49.9 percent to P5.89 billion while the group’s EBITDA (earnings before interest, taxes, depreciation and amortization) was flat at P6.48 billion.

Equity in net earnings of associates amounted to P499.76 million, down 5.6 percent from the previous level due to reduced income from the group’s investment in UIC Ltd.

Consolidated cost of sales and services climbed 17 percent P23.77 billion due to higher aviation fuel expenses incurred by its airline business.

However, the company booked P680.28 million in gains from its investment in the capital market, 51.9 percent higher than the previous level.

Food manufacturing arm Universal Robina Corp. reported a 36.5 percent growth in net income for the first half of its fiscal year ending September to P4.48 billion. Net sales improved 6.6 percent to P35.487 billion.

URC’s branded consumer foods (BCF) segment, including the packaging division, registered sales of P28.029 billion, up 13.1 percent. Of the total, the domestic foods business grew faster at 13.7 percent to P16.59 billion, largely driven by the be-verage division which jumped 41.5 percent on account of strong sales acceptance for its new product, Great Taste White Coffee.

For the snack foods division, snacks and biscuits exhibited double-digit growth.

http://www.philstar.com/Article.aspx?articleId=807650&publicationSubCategoryId=66

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