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: URC raises P7.44B from treasury shares

Universal Robina (Photo credit: Wikipedia)
Universal Robina Corp. (URC), the food and drink manufacturing arm of the John Gokongwei family, has raised P7.44 billion from the sale of treasury shares to institutional investors.

In a disclosure to the Philippine Stock Exchange, URC said it sold 120 million common shares previously held as treasury shares at P62 each or a 4.8 percent discount to the previous closing price and a 2.3 percent discount to the 30-day volume weighted average price.

The shares were crossed through a special block sale at the PSE yesterday.

CLSA Ltd. acted as sole bookrunner and sole placing agent for the sale.

URC said proceeds from the share sale will be used to fund potential acquisitions and for general corporate purposes.

The company has been expanding its footprint overseas and will soon open a new factory in Burma. Its international operations currently account for about a third of its business and is seen to grow as big as its domestic operations in around five years.

For this year, URC has set a capital spending of P5.2 billion, 14 percent higher than the P4.56 billion spent a year before. Majority of the capital budget, or 80 percent, will be used for the continued expansion of its branded consumer foods segment operations — primarily snack foods production facilities in the Philippines and biscuit factories in its two biggest markets, Thailand and Vietnam.

The remaining 20 percent of the capex will go to the construction of a $27-million bioethanol plant at URC’s sugar milling complex in Negros Occidental.

Bioethanol is a form of renewable energy intended to provide a more environmentally and economically friendly alternative fossil fuels such as diesel and gasoline. It can be made from very common crops such as sugarcane, potato and corn.

The bioethanol plant, which will churn out 100,00 liters of fuel a day, is projected to contribute a little over one percent to company’s revenues.

URC grew its net earnings in the first half of its fiscal year ending September 2012 by 36.5 percent to P4.48 billion due to significant improvement in market values of bond and equity holdings and lower foreign exchange loss from foreign currency-denominated transactions.

Sales rose 6.6 percent to P35.49 billion while core sales went up 13 percent.

URC is involved in a range of food-related businesses, including the manufacture and distribution of branded consumer foods, production of hogs and day-old chicks, manufacture of animal and fish feeds, glucose and veterinary compounds, flour milling, and sugar milling and refining.

http://www.philstar.com/Article.aspx?articleId=817222&publicationSubCategoryId=66

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Stock News 2012: New product from URC

Whatever the season, pastries never fail to delight the Filipino palate. One of the most popular treats is mamon, the Pinoy version of the well-loved sponge cake. With its simple yet irresistibly soft and buttery texture, it’s no wonder it has made its way onto every food-lover’s merienda time throughout the years. Jack ‘n Jill Espesyal, the newest brand from Universal Robina Corp. (URC), lets food-lovers delight in the special mamon goodness that they know and love with its new Espesyal Mamon, Mamon Cups and Mamon De Leche. The Jack ‘n Jill Espesyal Mamon is light and subtly sweet. Its soft and buttery goodness can also be enjoyed in smaller servings with the Mamon Cups, which are perfect for sharing with families and friends.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=795072