Local food conglomerate Universal Robina Corporation (URC) is moving forward with its planned exit from the Chinese market next year and reallocating its resources to the faster-growing Asian market.
In a disclosure, the URC said the move was part of its strategic strategy to cease operations entirely in China. URC, which operates cereals and snacks businesses in China, has already stopped its manufacturing and sales operations in the region.
"This will allow URC to redeploy resources to higher-growth markets across the region," URC told the Philippine Stock Exchange (PSE).
The Filipino company is in Hong Kong, Indonesia, Malaysia, Myanmar, Singapore, Thailand, and Vietnam.
URC reported sales of P80.7 billion from January to June 2024, an increase of 3% from the same period last year. All business units showed higher sales volumes.
Operating income grew by 10% to P9.4 billion, driven by easing commodity costs and strong results from cost-saving programs.
Net income from continuing operations rose 8% to P7.6 billion, while core net income increased by 5% to P6.7 billion. Higher tax provisions offset 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 P1.90 per share dividend to stockholders on record as of August 30, with payout set on September 25.
URC has increased its annual dividend per share by 5% over the past four years.
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