Universal Robina Corporation (URC) posted sales of Php 78.

6 billion for the first six months ending

June 30, 2023, up 11% vs. the same period last year, and sustaining its growth momentum from 2022.
All businesses continued to grow, signaling resilient consumer demand across the region.

Operating income for the first half improved faster than topline, increasing 16% vs. the same period
last year to hit Php8.6 billion. Growth for the second quarter accelerated to 18%. Margins expanded
versus last year despite generally higher commodity costs, as the company saw the full year impact of
the necessary pricing moves executed in 2022. Net income was up 8% at Php 7.0 billion, with the
second quarter recording an 18% increase, in line with operating income growth. Core net income
was up 11% versus same period last year.

URC’s financial position remains strong, with a healthy cash balance of Php11.4 billion, net debt of
Php8.6 billion and a low gearing ratio of 0.18.

In January 2023, the Philippines' inflation rate peaked at 8.7% year on year, driven by a combination
of recovering domestic demand and rising global commodity prices. According to the United Nations
Food and Agriculture Organization (FAO), the global food price benchmark climbed last month as
higher international quotations for sugar, meat, and rice weighed impacts in prices for wheat, maize
or corn, dairy products, and vegetable oils. On the contrary, URC President and CEO Irwin Lee stated
that the company has maintained its sales pace while improving profitability over previous year.
Despite increased input costs and inflationary pressures, they are able to emphasize profitable growth
due to their strong brands and persistent operating discipline, regardless of how external factors
change.

Universal Robina Corporation (URC) of the Gokongwei family earned more money in the first six
months of the year as sales increased and profit margins rose. The company reported revenues of Php
78.6 billion for the first six months ended June 30, 2023, up 11% over the same period last year and
maintaining its growing momentum from 2022. As economies recover from substantial slowdowns,
demand will rise, putting upward pressure on food prices. URC's operations continuously monitor the
evolution of pricing and the reasons for increases in prices in order to assist margin recovery. Through
the monitoring of business segment operating results independently, the company is able to adapt to
changes in supply and demand and make decisions regarding the allocation of resources and
performance evaluation based on prices. The operating segments of the Group are arranged and
overseen in accordance with the type of goods and services offered; each segment is a strategic
business unit that provides various goods and caters to distinct markets, such as branded consumer
food products, agro-industrial and commodity products, and corporate business segment, which
invests in bonds and securities and sources funds.

Over that time, P54.1 billion in sales were recorded by URC's branded consumer foods sector. In
contrast, overseas revenues increased by 7% to P16.8 billion, led by companies operating in Vietnam,
Malaysia, and Myanmar. The Philippines section had a 7% increase in sales, totaling P37.4 billion.
In addition, higher selling prices caused a 23 percent increase in agro-industrial and commodities sales
to P23.8 billion, indicating strong consumer demand in the region.

, signaling resilient consumer demand across the region.

Net income from January to June rose 8 percent to P7 billion while core earnings, which removes the
impact of non-recurring items, expanded by 11 percent versus the same period in 2022.

URC, part of conglomerate JG Summit Holdings, ended the period with total sales of P78.6 billion, up
11 percent.
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“We are pleased that the company has maintained its sales momentum while showing improving
margins against last year, despite higher input costs and inflationary pressures,” URC president Irwin
Lee said in a statement on Friday.

During the six-month period, URC’s operating income climbed 16 percent to P8.6 billion, which the
food and drinks manufacturing giant attributed to “resilient consumer demand across the region”.

Margins expanded versus last year despite generally higher commodity costs, as the company saw the
full year impact of the necessary pricing moves executed in 2022,” it said in the statement.

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URC’s branded consumer foods division booked sales of P54.1 billion during the period. The
Philippines segment grew 7 percent to P37.4 billion in sales while international revenues were up 7
percent to P16.8 billion, driven by businesses operations in Vietnam, Malaysia, and Myanmar.

Moreover, agro-industrial & commodities sales surged 23 percent to P23.8 billion, driven by higher
selling prices.

“The company will continue to prioritize profitable growth on the back of our strong brands and
consistent operating discipline. No matter the external environment, URC takes pride in continuously
delighting consumers with good food choices,” Lee said.

In April sugar prices rose due to expectations of reduced output amid dry weather conditions in major
producing countries including India, China and Thailand.

And while prices of wheat and corn decreased, international prices of rice continued to increase
against a backdrop of reduced harvests caused by higher input costs and adverse weather, especially
outside of Asia, sales to Asian buyers.

• Consumer sentiment across the region is mixed as inflation remains high but shows signs of easing •
Increasing top-end of growth expectation range from high single digits to low double digits, with
operating income growing at a faster rate

Global inflationary pressures continued to moderate in March, though remained elevated by historical
standards. Stubbornly elevated inflation rates remain largely driven by labour and raw material costs,
albeit with pressures from both having moderated considerably over the past year. Upward pressure
from energy prices has dissipated, but recent oil price hikes threaten to reignite inflation, which has
already shown signs of re-accelerating in the US and Japan.