September 29, 2013

URC raises 2014 capex to record $150 M

Universal Robina Corp. (URC) is jacking up its capital spending for the fiscal year 2014 to a record $150 million versus the $120 million in the past 3 years. The company will begin its entry into the Myanmar market. The record spending will be funded by internally generated cash, with URC enjoying a net cash of around $200 million.

The company’s expansion is hinged on Jack n’ Jill for the chips, biscuits, packaged cakes, confectioneries, candies and chocolates; C2 for ready-to-drink tea and Great Taste white coffee. So far, the Philippines accounts for two-thirds of the revenues of URC. For fiscal year 2013, URC expects its net sales to jump 13 percent to P80.7 billion from P71.2 billion a year ago.

In the nine months ending June, URC’s net income surged 38.7 percent to P8.49 billion compared with P6.12 billion a year ago. Sales grew 13.3 percent to P60.09 billion from P53.04 billion last year.

URC corners 23 percent of the biscuits market and 26 percent of the wafers segment in Thailand while it controls 36 percent of Vietnam’s ready-to-drink tea sector. Vietnam has the potential to become a $1-billion market in the next 10 years while Thailand is already a mature market and Indonesia is scaling up. - WealthSec