Universal Robina in Q3: Earnings accelerate on margin recover

Universal Robina's Quarter Three earnings surged, driven by margin recovery, according to AB Capital Securities. Revenue climbed 7% year-over-year to P41.4 billion, while earnings before interest and taxes (EBIT) jumped 14% to P3.4 billion. Core net income expanded 21% to P2.4 billion. The company's 9-month performance remained positive, with revenue increasing 5% to P130.7 billion, EBIT rising 3% to P12.8 billion, and core net income growing 7% to P9.1 billion.

Higher operating expenses somewhat reduced operating profit growth, but were partially offset by lower financing costs. International and Flour divisions played a significant role in boosting profitability, with International EBIT increasing 22% in peso terms and margins expanding 65 basis points to 14.8%, while Flour contributed more robustly.

However, SURE's performance was softer. The 9-month core net income of P9.1 billion accounted for 70% of AB Capital's P12.9 billion FY26E forecast and 76% of consensus estimates. AB Capital Securities cautioned that the information provided was based on reliable sources but was not guaranteed and could not be considered comprehensive.

They also noted that they or their directors and officers may hold positions in the mentioned securities and may buy or sell them in the open market.