UNIVERSAL ROBINA CORPORATION Q1 CY2024
Unaudited Results
Investor Briefing
May 3, 2024
Irwin C. Lee | Pancho M. Del Mundo | Jose Miguel T. Manalang |
President and CEO | Chief Investments, Strategy, and Corporate | Strategy and Investor Relations Director |
Services Officer | ||
Disclaimer
This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Universal Robina Corporation (URC) and plans and objectives of the management of URC. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results or performance of URC to be materially different from any future results or performance expressed or implied by such forward looking statements. Such forward looking statements were based on numerous assumptions regarding URC's present and future business strategies and the political and economic environment in which URC will operate in the future.
Consistency on Strategy: Where to Play
Growth Objective: High Single Digit Topline Growth, Double Digit Profit Growth
Grow the COREin
Beverage and Consumer Foods
Agro-Industrial and Commodities
Expand for MOREin adjacent segments and geographies
- New Bakery and Beverage
- New International Legs
- Pet Food
Consistency on Strategies: How-To-Win
Products and Brands People Love
- NPD Contribution
- Core Brand Health
- Market Leadership Position
Preferred Partner of Choice
- Store Coverage and Distribution Expansion
- Customer Collaboration and Shopper Experience
- Supplier Partnership Excellence
People and Planet Friendly Culture
- People Engagement
- Agile, Digital, Leadership Transformation
- Sustainability 6 Focus Areas
Product Supply Chain
Transformation
- Customer Service Fill Rates
- Lean Savings and Supply Excellence
- Supply Network Redesign
Executing Strategies to deliver long term growth and value
Continuing Operations (in Php B)
SALES
EBIT
Operating Margin
2018 | 2019 |
106.9 | 114.4 |
10.8 | 12.7 |
10.1% | 11.1% |
2020 | 2021 |
113.2 | 117.0 |
13.9 | 12.7 |
12.3% | 10.9% |
Covid Disruptions
2022 | 2023 |
149.9 | 158.4 |
15.2 | 17.4 |
10.2% | 11.0% |
CAGR
5Yr / 2Yr
8% / 16%
10% / 17%
Sales 5Yr
CAGR
More 20%
(Munchys, Pet, New Bakery/Bev)
More + M&A
Core
Core 7%
BCF PH 6%
URCI 7%
AIC 11%
Current Growth Focus Areas
- Mid to High Single Digit Topline Growth
CORE | MORE | |
BCF PH | • Volume Driven Market Share | • Emerging Bakery and |
Recovery (with Coffee and Noodles fixes) | Beverage segments | |
• Customer Service and Supply | ||
Network Upgrade |
URCI
AIC
• | Sustain Top 3 Markets Growth | • | Munchy's Expansion in |
• | Stabilize Pricing Corrections | Southeast Asia | |
• | New Legs | ||
• | Mills Capacity Expansion | • | Pet Expansion |
• | Farms Restructure |
- Double Digit Profit Growth
Executive Summary
- Q1 2024 Revenues Php42.6B up +7% vs. SPLY, with 90%+ customer service fill rates continuing into 2024.
- URC volume driven growth across all divisions, with balanced portfolio growth across premium vs. value tiers and core vs. emerging segments.
- Market category volumes softening except for RTD beverages and instant coffee solubles. URC market shares still mixed, with continuing improvements from international and foods categories and main challenge in coffee.
- Q1 2024 Operating Income Php5.4B up +16% vs. SPLY, double the rate of revenue increase and strong margin growth across business units.
- Profit and margin progress from pricing and cost savings initiatives and mixed material inputs movements, whilst enabling reinvestment into brands and customers.
Total URC
SALES
In billion pesos
EBIT | NET INCOME |
In billion pesos | In billion pesos |
39.8 | 42.6 | 7% |
2023 Q1 | 2024 Q1 |
- First quarter revenues up 7%, driven by higher volumes from SURE and BCF PH
5.4 | 16% | |
4.7 | ||
2023 Q1 | 2024 Q1 |
- Operating income up 16%, more than double the rate of topline growth with strong margin progress
4.4 | 21% | |
3.6 | ||
3.6 | 3.9 | 8% |
2023 Q1 | 2024 Q1 |
Core NI
- Net income up 21% from strong operating income, plus higher forex gains and lower other expense (impairment)
- Core net income above revenue growth; higher operating income partly offset by higher tax provision
BCF PHILIPPINES
Volume driven topline growth with strong margin expansion
SALES
In billion pesos
• | ||
• | ||
18.1 | 19.1 | 6% |
• | ||
2023 Q1 | 2024 Q1 |
Sales momentum continued into the 1st quarter, with volume growth across majority of categories as planned
Double digit growth from Snacks, Bakery, and RTD Beverages, with balanced contribution from value and premium segments
Market Share trends stabilizing, still with main drag in coffee. Q2 restages on coffee and noodles underway.
EBIT
In billion pesos
• | ||
2.5 | 13% | |
2.2 | • | |
2023 Q1 | 2024 Q1 |
Strong profit growth from higher volumes, mix, cost savings and net lower material input costs
Significant margin expansion despite A&P reinvestments
*Excluding packaging
Core + More growth across multiple segments
CORE | MORE | |||
Snacks | Baked Cakes | +67% | ||
Potato-Based | ||||
+8% |
Non-Potato | ||
+17% | Non-Tea RTD Beverages | +22% |
Biscuits
Cookies Sandwiches
+15%
Crackers
+21%
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Disclaimer
Universal Robina Corporation published this content on 08 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2024 10:24:08 UTC.
