Gokongwei anchor firms RLC, URC post strong Q1 earnings

MANILA, Philippines — The property development arm and the food and beverage unit of the Gokongwei Group posted robust earnings in the first quarter as sales improved across all their business divisions.

Robinsons Land Corp. (RLC) grew its income by more than half on the back of strong growth performance across all its business units, while higher operating income and forex gains boosted the earnings of  Universal Robina Corp. (URC) by a little over a fifth in the first quarter.

RLC’s net income attributable to parent surged by 53 percent year-on-year to P4.07 billion from January to March.

Excluding one-time gain on the reclassification of its GoTyme investment, net income to parent stood at P3.34 billion, up by 21 percent year-on-year.

“Our remarkable first-quarter results following a record-breaking year is a testament to the successful execution of our strategic initiatives,” RLC chairman, president and CEO Lance Gokongwei said.

URC, meanwhile, reported a net income of P4.4 billion during the quarter, up by 21 percent year-on-year.

The company’s sales grew by seven percent to P42.6 billion, fueled by higher sales volumes across all divisions.

“Amidst a cautious consumer sentiment and inflationary environment, we continue to deliver top and bottomline value by executing strategies to grow our core businesses, while expanding into new segments, categories, and geographies and driving sustainable margin growth,” URC president and CEO Irwin Lee said.

RLC generated total revenues of P11.03 billion during the three-month period, a 19 percent year-on-year growth.

Due to higher occupancy from both existing and new malls and sustained consumer spending, revenues of Robinsons Malls expanded by 14 percent to P4.45 billion, accounting for 41 percent of consolidated revenues.

Robinsons Offices also posted a steady topline result with a three percent improvement in revenues to P1.90 billion in the first quarter, driven primarily by steady rental growth in majority of its high-quality office developments.

Robinsons Hotels and Resorts likewise sustained its positive trajectory with revenues rising by 54 percent to P1.35 billion.

With its expanded portfolio, Robinsons Logistics and Industrial Facilities registered a 40-percent jump in revenues to P192 million during the quarter.

Meanwhile, Robinson Destination Estate recorded property development revenues of P252 million from the deferred sale of parcels of land to joint venture entities.

RLC also saw a 20 percent year-on-year increase in realized revenues for its residential division, which stood at P2.84 billion.

To optimize synergies and maximize cost efficiencies, RLC has merged the operation of RLC Residences and Robinson Homes, with the business units consolidated under the brand of RLC Residences.

“Bolstered by our robust fundamentals and strong balance sheet, we remain steadfast in our pursuit toward sustained growth and innovative strategies,” Gokongwei said.

RLC currently has over 800 hectares of land bank nationwide.

The company said it continues to be on the lookout for properties to acquire for the expansion of its various businesses.

It also remains open to joint venture projects with property owners and developers.

For URC, sales from its branded consumer foods (BCF) group, excluding packaging, reached P28 billion in the first quarter, a four-percent improvement from the same period last year.

URC said BCF Philippines revenues expanded by six percent to P19.1 billion as volume growth was recorded across the majority of categories, with strong snacks, bakery and ready-to-drink beverages sales driving topline improvements.

BCF International, on the other hand, posted P8.9 billion in revenues, up four percent year-on-year on the back of constant currency and same in peso terms versus year ago due to foreign exchange translation.

According to URC, revenue growth was seen across the region on market share gains, particularly Vietnam, Myanmar and Malaysia.

The company’s agro-industrial and commodities group, meanwhile, delivered strong first quarter sales of P14.3 billion, 15 percent higher year-on-year, as all divisions saw healthy volume growth which offset lower selling prices for commodities

“We look forward to more progress in 2024 as we increase investments for growth and deliver on our mission – to provide our consumers with good food and beverage choices for the years to come,” Lee said.