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Universal Robina Corporation

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Universal Robina Corporation: Consumer Packaged Goods Company Profile & SWOT Analysis
www.canadean-winesandspirits.com
Universal Robina Corporation
TABLE OF CONTENTS
1
Universal Robina Corporation ............................................................................................................... 6
2
Universal Robina Corporation - Key Employees ................................................................................... 7
3
Universal Robina Corporation - Major Products and Services .............................................................. 8
4
Universal Robina Corporation - History ............................................................................................... 10
5
Universal Robina Corporation - Company Statement.......................................................................... 12
6
Universal Robina Corporation - Locations and Subsidiaries .............................................................. 16
7
8
6.1
Universal Robina Corporation - Head Office ........................................................................................................ 16
6.2
Universal Robina Corporation - Other Locations and Subsidiaries ....................................................................... 16
Universal Robina Corporation - Business Analysis ............................................................................ 19
7.1
Universal Robina Corporation - Company Overview ............................................................................................ 19
7.2
Universal Robina Corporation - Business Description .......................................................................................... 19
Universal Robina Corporation - SWOT Analysis ................................................................................. 20
8.1
Universal Robina Corporation - SWOT Analysis - Overview ................................................................................ 20
8.2
Universal Robina Corporation - Strengths ........................................................................................................... 20
8.2.1
Strength - Dominant Market Leadership ...................................................................................................... 20
8.2.2
Strength - Broad Product Portfolio ............................................................................................................... 20
8.2.3
Strength - Strong Revenue Growth .............................................................................................................. 20
8.3
Universal Robina Corporation - Weaknesses ...................................................................................................... 20
8.3.1
8.4
Universal Robina Corporation - Opportunities...................................................................................................... 21
8.4.1
Opportunity - Strategic Expansion Initiatives ................................................................................................ 21
8.4.2
Opportunity - Increase in Global Food Consumption .................................................................................... 21
8.4.3
Opportunity - Growing Global Consumption of Functional Drinks ................................................................. 21
8.5
9
Weakness - Geographical Concentration of Revenues ................................................................................ 20
Universal Robina Corporation - Threats .............................................................................................................. 21
8.5.1
Threat - Fluctuating Raw Material Prices ..................................................................................................... 21
8.5.2
Threat - Stringent Regulations in the Philippines.......................................................................................... 22
8.5.3
Threat - Changing Consumer Preferences................................................................................................... 22
Universal Robina Corporation - Company Financial Analysis ............................................................ 23
9.1
Universal Robina Corporation - Five Year Snapshot: Overview of Financial and Operational Performance
Indicators ....................................................................................................................................................................... 23
9.2
Universal Robina Corporation - Interim ratios ...................................................................................................... 25
9.2.1
9.3
Universal Robina Corporation - Financial ratios: Capital Market Ratios ........................................................ 25
Universal Robina Corporation - Financial Performance and Ratio Charts ............................................................ 26
9.3.1
Universal Robina Corporation - Revenue and Operating margin .................................................................. 26
9.3.2
Universal Robina Corporation - Asset and Liabilities .................................................................................... 27
9.3.3
Universal Robina Corporation - Net Debt vs. Gearing Ratio ......................................................................... 28
9.3.4
Universal Robina Corporation - Operational Efficiency ................................................................................. 29
9.3.5
Universal Robina Corporation - Solvency .................................................................................................... 30
9.3.6
Universal Robina Corporation - Valuation .................................................................................................... 31
9.4
Universal Robina Corporation - Competitive Benchmarking ................................................................................. 32
9.4.1
Universal Robina Corporation - Market Capitalization .................................................................................. 33
9.4.2
Universal Robina Corporation - Efficiency .................................................................................................... 34
9.4.3
Universal Robina Corporation - Valuation .................................................................................................... 35
9.4.4
Universal Robina Corporation - Turnover: Inventory and Asset .................................................................... 36
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Universal Robina Corporation
9.4.5
10
Universal Robina Corporation - Liquidity ...................................................................................................... 37
Universal Robina Corporation - Mergers & Acquisitions and Partnerships ........................................ 38
10.1
Universal Robina Corporation - M&A and Partnerships Strategy.......................................................................... 38
11
Universal Robina Corporation - Recent Developments ....................................................................... 42
12
Appendix .............................................................................................................................................. 44
12.1
Methodology ....................................................................................................................................................... 44
12.2
Universal Robina Corporation - Ratio Definitions ................................................................................................. 44
12.3
Disclaimer........................................................................................................................................................... 49
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Universal Robina Corporation
List of Tables
Table 1: Universal Robina Corporation - Key Employees ..................................................................................................... 7
Table 2: Universal Robina Corporation - Major Products and Services................................................................................ 8
Table 3: Universal Robina Corporation - History ................................................................................................................ 10
Table 4: Universal Robina Corporation - Subsidiaries ........................................................................................................ 16
Table 5: Universal Robina Corporation - Locations ............................................................................................................ 18
Table 6: Universal Robina Corporation - Annual ratios ....................................................................................................... 23
Table 7: Universal Robina Corporation - Interim ratios ....................................................................................................... 25
Table 8: Universal Robina Corporation - Capital Market Ratios .......................................................................................... 25
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Universal Robina Corporation
List of Figures
Figure 1: Universal Robina Corporation - Revenue and Operating Profit ............................................................................ 26
Figure 2: Universal Robina Corporation - Asset and Liabilities ........................................................................................... 27
Figure 3: Universal Robina Corporation - Net Debt vs. Gearing Ratio ................................................................................ 28
Figure 4: Universal Robina Corporation - Operational Efficiency ........................................................................................ 29
Figure 5: Universal Robina Corporation - Solvency ............................................................................................................ 30
Figure 6: Universal Robina Corporation - Valuation ........................................................................................................... 31
Figure 7: Universal Robina Corporation - Market Capitalization ......................................................................................... 33
Figure 8: Universal Robina Corporation - Efficiency ........................................................................................................... 34
Figure 9: Universal Robina Corporation - Valuation ........................................................................................................... 35
Figure 10: Universal Robina Corporation - Turnover: Inventory and Asset ......................................................................... 36
Figure 11: Universal Robina Corporation - Liquidity ........................................................................................................... 37
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Universal Robina Corporation
1 Universal Robina Corporation
Financial Snapshot
Operating Performance
Fast Facts
Headquarters Address
110 E. Rodriguez
Ave,Quezon,Quezon,1110,Philippines
Telephone
+63 2 6337631
Fax
+63 2 6339207
Website
www2.urc.com.ph
Ticker Symbol , Exchange Name
URC,Philippines Stock Exchange
Number of Employees
12,260
Fiscal Year End
September
Revenue (US$ million)
2,563
The company reported revenue of US$2,563 million
during the fiscal year 2015 (2015). The company's
revenue grew at a CAGR of 13.30% during 2011–
2015, with an annual growth of 18.04% over 2014. In
2015, the company recorded an operating margin of
15.83%, as against 15.15% in 2014.
Revenue and Margins
SWOT Analysis
Strengths
Weaknesses
Broad Product Portfolio
Geographical Concentration of
Revenues
Dominant Market Leadership
Strong Revenue Growth
Opportunities
Threats
Growing Global Consumption of
Functional Drinks
Changing Consumer Preferences
Return on Equity
The company recorded a return on equity (ROE) of
18.97% for the fiscal year 2015, as compared to its
peers, Danone SA (Ticker: BN), San Miguel
Corporation (Ticker: SMC) and Ginebra San Miguel,
Inc. (Ticker: GSMI), which recorded ROEs of 10.18%,
5.23% and -9.40% respectively. Furthermore, the
company reported an operating margin of 15.83% in
2015.
Return on Equity
Increase in Global Food Consumption Fluctuating Raw Material Prices
Strategic Expansion Initiatives
Stringent Regulations in the Philippines
Share Data
Share price (US$) as on 10 Jun 2016
4.53
EPS (US$)
0.13
Market Capitalization (US$ million)
10,192
Enterprise Value (US$ million)
10,639
Shares outstanding (million)
2,182
Liquidity Position
The company reported a current ratio of 2.30 in 2015,
as compared to its peers, Danone SA, San Miguel
Corporation and Ginebra San Miguel, Inc., which
recorded current ratios of 0.87, 1.32 and 0.72
respectively. As of September 2015, the company
recorded cash and short-term investments of worth
US$439 million, against US$20 million current debt.
The company reported a debt to equity ratio of 0.42 in
2015 as compared to its peers, Danone SA, San
Miguel Corporation and Ginebra San Miguel, Inc.,...
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Universal Robina Corporation
2 Universal Robina Corporation - Key Employees
Table 1: Universal Robina Corporation - Key Employees
Name
Job Title
Board Level
Frederick D. Go
Director
Executive Board
James L. Go
Chairman, Director
Executive Board
Johnson Robert G. Go, Jr.
Director
Executive Board
Lance Y. Gokongwei
Chief Executive Officer, President, Director
Executive Board
Pascual S. Guerzon
Director
Executive Board
Robert G. Coyiuto, Jr.
Director
Executive Board
Wilfrido E. Sanchez
Director
Executive Board
Bach Johann M. Sebastian
Senior Vice President
Senior Management
Constante T. Santos
Senior Vice President
Senior Management
Cornelio S. Mapa, Jr.
Executive Vice President, Managing Director Senior Management
URC Branded Consumer Foods Group
Ester T. Ang
Vice President, Treasurer
Senior Management
Mike Liwanag
Vice President - Corporate Planning and
Investor Relations
Senior Management
Patrick Henry C Go
Director, Vice President
Senior Management
Rosalinda F. Rivera
Secretary
Senior Management
John L. Gokongwei, Jr
Director, Chairman - Emeritus
Non Executive Board
Source: Canadean
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Universal Robina Corporation
3 Universal Robina Corporation - Major Products and Services
Universal Robina Corporation is a food manufacturing company based in the Philippines. The major products
and services offered by the company include the following:
Table 2: Universal Robina Corporation - Major Products and Services
Products:
Branded Consumer Foods:
Snacks
Candies
Chocolates
Biscuits
Bakery Products
Coffee
Noodles
Canned Beans
Sauces
Tomato
Paste
Beverages:
Packaged Water
Carbonates
Still Drinks
Iced/RtdCoffee Drinks
Agro industrial products:
Animal Feeds
Glucose Products
Commodity Food Products:
Sugar
Flour
Brands:
Jack 'n Jill
Chiz
Curls
Choco
Curls
Sea Crunch
Chippy
Mr. Chips
Taquitos
Tostillas
Jojo
Gummies
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Universal Robina Corporation
Table 2: Universal Robina Corporation - Major Products and Services
Nips
Regular
Nips
Peanut
Nips
Crispies
Evian
Hidden Springs
Nestle Pure Life
Perrier
Robinson Water
Vittel
Voltic
King Cola
Nature’s Harvest
Refresh
OMJ (Oh My Juice)
C2 Cool & Clear
C2 Milk Tea
C2 Sugar Free
C2 Envidia
C2 Green Leaf
C2 Milk Tea
C2 Tealicious
Coffee Twist
Great Taste
Source: Canadean
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Universal Robina Corporation
4 Universal Robina Corporation - History
Table 3: Universal Robina Corporation - History
Year
Event type
Description
2016
Corporate Awards
The company was recognized by Asia Marketing Federation as the Marketing Company of
the Year.
2015
Commercial Operation
The company commissioned its 46-megawatt biomass power facility in Negros Occidental,
the Philippines.
2015
Contracts/Agreements
The company entered into a partnership with Calbee, Inc., to introduce Jack 'n Jill Calbee.
2015
Contracts/Agreements
The company collaborated with KidZania Manila to introduce the Jack ‘n Jill Snack Factory.
2015
Acquisitions/Mergers/Takeovers
The company acquired Griffin’s Foods, a producer of snacks, for NZD700 million to expand its
business operations in New Zealand and Australia.
2014
Contracts/Agreements
The company entered into an agreement with Calbee Inc. to establish a joint venture CalbeeURC Inc.
2014
New Products/Services
The company launched Jack ‘n Jill Cloud 9 Chocolate Milk Drink.
2014
New Products/Services
The company introduced two new variants Big Bang Banana Split and Big Bang Blueberry &
Cheese.
2014
Corporate Changes/Expansions
The company started construction of a bagasse-fired power plant in Negros Occidental,
Philippians.
2014
Contracts/Agreements
The company signed a joint venture agreement with Danone Asia Holdings to produce and
distribute beverages in the Philippines.
2014
Acquisitions/Mergers/Takeovers
The company acquired Griffin’s Foods Limited, a leading New Zealand snack foods
business, from Pacific Equity Partners for NZ$ 700 million.
2013
Corporate Changes/Expansions
The company invested US$35 million for ethanol distillery plant.
2012
Plans/Strategy
The company announced a plan to expand its sugar business via a local acquisition.
2012
Acquisitions/Mergers/Takeovers
The company acquired a sugar mill located in Negros Oriental from Herminio Teves & Co.,
Inc. to further expand its sugar milling business.
2012
New Products/Services
The company launched Payless Xtra Big Pancit Canton.
2012
New Products/Services
URC introduced a new Jack ‘n Jill Filled Stix Nutty Choco Delight, a pretzel stick that
combines two chocolate and peanut butter flavors in one treat.
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Universal Robina Corporation
Table 3: Universal Robina Corporation - History
Year
Event type
Description
2012
New Products/Services
The company introduced Jack ‘n Jill Chicharron in Spicy Sisig flavor.
2012
New Products/Services
The company launched El Real Healthy Spaghetti.
2012
Acquisitions/Mergers/Takeovers
URC acquired the remaining 23.00% non-controlling interest of URC International making it a
wholly owned subsidiary.
2011
New Products/Services
The company launched two new coffees: Great Taste White coffee, a new coffee in its Great
Taste’s line of 3-in-1 coffee mixes, and Blend 45, a new Filipino blends.
2008
Acquisitions/Mergers/Takeovers
The company acquired General Milling (GMC) snack manufacturing assets and trademarks
and expanded its portfolio of salty snacks.
2008
Corporate Changes/Expansions
In March 2008, the company entered into the Chinese biscuit market.
2007
Corporate Changes/Expansions
URC established a biscuit plant in Shanghai, China.
2007
Acquisitions/Mergers/Takeovers
The company acquired water manufacturing facilities and trademark from Nestle Water
Philippines.
1996
Research and Development
The company opened a central research and development facility, to conduct research on
new product development and line extensions on existing products.
1990
New Products/Services
The company started its plastics business, through URC Packaging.
1980
Acquisitions/Mergers/Takeovers
The company acquired three sugar mills and refineries, under URC Sugar.
1963
Others
Robina Farms started its operations with poultry products.
1960
Others
The company's branded consumer foods division began its operations.
1954
Incorporation/Establishment
Universal Robina Corporation was established in Pasig, Philippines.
Source: Canadean
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Universal Robina Corporation
5 Universal Robina Corporation - Company Statement
A joint statement by Mr. James L Go, the Chairman, and Mr. Lance Y. Gokongwei, the President and Chief Executive Officer
of Universal Robina Corporation is given below. The statement has been taken from the company’s 2015 annual report.
To our valued shareholders,
The overall global economy continued to face a series of tough challenges in 2015 driven by the decline in oil prices,
softening of demand for key commodities and stock market and currency swings. The slowdown in China and the much
anticipated action of the US to increase rates have further exacerbated the situation and have added to the uncertainty
amongst businesses and the capital markets. Global trade grew at its slowest pace since 2009, as import demand in
emerging economies fell. Muted economic activity in the developing and emerging markets led to dismal growth and this has
prompted governments to intervene by proactively adjusting their monetary and fiscal policies. Geopolitical tensions were
also present as the simmering unrest between Ukraine and Russia, the conflict in Syria, and the violent rise of militant
groups created a climate of insecurity globally. There is however a gradual acceleration in economic activity in advanced
economies driven by the gradual recovery of the US economy with steady gains in the labor market and increase in
consumer spending. The EU has also adopted a more neutral fiscal policy while Japan has started quantitative easing and
devaluing its currency to buoy up its economy.
In the ASEAN region, economic conditions softened as a result of the slowdown in China, which crippled exports from
commodity driven economies such as Indonesia and Malaysia. Given ballooning current account and fiscal deficits,
governments tried to curb on subsidies and this has further created inflationary pressures. Overall, this situation is pushin g
growth in ASEAN to the lowest level in six years and driving some of the region’s currencies to fall to multi-year lows against
the US dollar which resulted to a slower GDP growth this year. The weaker macro conditions resulted to a general slowdown
in consumption with consumer sentiment being weak outside our home market.
Zooming in further to the economies of our most important markets, certain macro and political themes have persisted and
this has directly or indirectly affected our performance.
Thailand’s economy was constrained by falling farm incomes with weak agricultural prices, lower exports and increased
household debt. Softer dynamics can be seen in Malaysia as households continue to adjust to the GST implementation in
April. Deceleration in fixed investment, weak exports and Rupiah devaluation in Indonesia have dampened economic growth
this year while Vietnam’s economy has started recovering buoyed up by the increase in foreign direct investments and
strong exports. Vietnam’s domestic consumption has also started to peak up with inflation trending downwards. Unlike many
of its Asian peers, Southeast Asia’s fifth-largest economy, the Philippines, has remained resilient in the face of sputtering
global demand. The economy was supported by strong domestic consumption, which continued to be underpinned by higher
employment, low inflation, stable flow of remittances, and increased private investment. The Business Process Outsourcing
(BPO) sector contribution increased to 17% versus last year which fuelled consumer spending while continuing pressure
such as the El Niño dry weather phenomenon has posed a major downside risk for agriculture as well as weaker exports. In
New Zealand, economic acceleration was mainly driven by significant improvements in manufacturing and services
industries of the country partly offset by the record low prices for dairy because of oversupply while Australia experienced
economic challenges with very volatile international commodity prices that resulted in a sharp contraction of exports derived
from mining and the devaluation of its currency.
URC: ANOTHER STRONG FISCAL YEAR WITH RECORD SALES AND MARGINS
Amidst the economic turbulence in 2015, we managed to have another strong fiscal year as URC posted record high sales,
EBIT and EBIT margins. Sales hit Php 109.1 billion, a growth of 18.1% over the previous year driven by Branded Foods,
Sugar and Feeds. Full year margins expanded by 65bps with absolute operating income reaching Php 17.4 billion, a 23.0%
growth versus same period last year. We have registered core earnings of Php 16.3 billion, 15.0% higher than last year
while net finance cost was at Php 1.0 billion, majority are interest payments for the long term debt used to finance the
Griffin’s acquisition. We have also booked equitized losses from the two new joint ventures as these businesses just started
commercial launch and operations in January and February and we are still spending heavily to build the brands and scale
up distribution.
We are now in a net debt position of Php 8.6 billion from a net cash position of Php 1.8 billion at the end of FY2014 as we
booked a Php 21.9 billion long term debt for the Griffin’s acquisition. EBITDA reached Php 22.1 billion, a 22.7% increase
from last year. Major cash outflows include capital expenditures, which amounted to Php 6.5 billion and dividends payment
of Php 6.5 billion. Majority of our capital expenditures in FY2015 were earmarked to build additional capacities and
capabilities. This includes site development and building construction for new facilities and warehouses in Central Vietnam,
Myanmar, Indonesia and Thailand; installation of additional capacities for snackfoods and beverages manufacturing; potato
chips line for Calbee JV and retrofitting of PET lines for our Danone JV. We also finished off projects for our renewables
business, notably the Phase II of our biomass cogeneration facility.
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Universal Robina Corporation
BRANDED CONSUMER FOODS GROUP: Growth Translated to Record Income and Margins
Total Branded Foods including packaging division posted sales of Php 91.9 billion, an increase of 18.9% versus last year
while EBIT grew faster by 30.5% to Php 14.5 billion mainly due to relaxed input costs for soft commodities, additional scale,
and operational efficiencies. Topline growth was driven by our major markets namely Philippines, Vietnam, Thailand, and
Indonesia as well as the Griffin’s consolidation which started in the middle of November last year.
BCFG PHILIPPINES: Margins Healthy Though Topline Growth is Tempered Given Higher Base
Branded Foods Philippines continued its strong performance registering a full year growth of 10.0% with sales of Php 57.6
billion despite a higher base and increased competitive pressures across our different product categories. El Niño has also
started affecting consumer demand given weaker sales in the general trade especially in the Visayas and Mindanao regions.
Volume growth, lower input prices, and operational efficiencies all contributed to the 23.5% increase in operating income
hitting Php 10.7 billion with all time high EBIT margins of 18.5%.
Beverage remains a significant source of revenues for the domestic business and posted a growth of 12.7% versus last year
mainly coming from our coffee business with our strong brand, Great Taste. We managed to outpace total category growth
despite aggressive competitor activities and reached 29.5% value market share. RTD beverages growth mainly came from
C2 where we are still the clear market leader at 84.1% value share. Snackfoods business also grew driven by our core
brands like Mang Juan, Piattos, Nova, Pic-A, Cloud 9, Nips, Dewberry, Wafrets and Pretzels. We have maintained our
market leadership in salty snacks, candies and chocolates while we are a strong challenger in the biscuits and cakes
categories.
On our joint ventures, Nissin Universal Robina (NUR) Cup and Pouch segments performed well which resulted to a sales
growth of 17.7%. Nissins Cup Noodles remained to be the leader in the cup segment. On the other hand, sales momentum
has consistently increased for our two new JVs with Danone and Calbee since the launch of the products last January and
February, respectively. We expect to gain additional traction as we continue to invest in A&P to build the equity of these
brands and distribution expansion. The initial results indicated good traction.
Overall, we launched seventy nine (79) new products for the year which contributed 5.4% to total sales.
BCFG INTERNATIONAL: Navigated the Difficult Macro-Environment Well
Our international business operates in the developing countries in the ASEAN where the macro-environment was very
challenging. Our business managed to stay afloat and we have navigated the situation well.
Total international sales grew by 39.4% at Php 33.1 billion (including the consolidation of Griffin’s sales for 10.5 months).
Growth was driven by Thailand, Indonesia, Vietnam and New Zealand. Operating income expanded by 52.7% versus last
year amounting to Php 3.8 billion due to lower input prices partly offset by forex volatility. This has improved EBIT margins
by 101 bps. In US dollar terms, sales amounted to US$ 736 million, a growth of 36.6% vs. last year’s US$ 539 million.
Operating income amounted to US$ 85 million which is a 49.7% increase from last year.
Below are the highlights in some major international markets where we operate.
Amidst the slowdown in the Thai economy due to weak private consumption, our business continued to post double digit
growth driven by our core biscuit brands. Our strategies of providing new products exclusively for some retailers in the first 6
months of launch, price pack for better affordability and promotional programs in all channels have paid off despite the very
weak consumer sentiment prevailing in this market. We have maintained our market leadership on biscuits and wafers and
have driven the growth in these categories.
Our Vietnam business remained robust with C2 maintaining its brand leadership for the RTD tea market while our energy
drink brand, Rong-Do, grew at a very fast pace. We continued to build our snackfoods franchise to complement our
beverage portfolio with selective launches and focused distribution initiatives across this market.
Indonesia remains on the path to scale with topline showing a promising growth despite the very weak and negative
consumer sentiment in the country. Piattos was able to hit all time high sales while our second largest salty snacks brand,
Chiz King, continued its growth momentum. Our chocolate bar brand, Cloud 9, also posted strong sales for the year. URC is
now the fastest growing salty snacks company in Indonesia with Piattos registering to be the second largest potato chips
brand in this market.
Griffin’s, on the other hand, posted growth in sales volume in its home market New Zealand with sweet biscuits and crackers
performing well. The business posted very good market share gains over the past year but remains challenged by the higher
trading terms and discounts as well as private label offerings. The Australia business posted double-digit growth in volume
driven by private label biscuits and bars.
On new markets, we have commissioned our local manufacturing facility last July in Myanmar. The first line is producing
wafers under the brand name Halo for the local market. We have also started selling and distributing products to two
additional frontier markets namely Cambodia and Laos by formally appointing distributors in these two geographies.
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Universal Robina Corporation
NON-BRANDED CONSUMER FOODS GROUP: Topline Grew Double-Digit and Consistently Delivered Stable Profit
Contribution
Non-Branded Consumer Foods Group, composed of Commodity Foods Group (CFG) and Agro-Industrial Group (AIG),
registered a double-digit topline growth of 13.5% amounting to Php 17.2 billion. This division contributed 15.8% to total
company sales and 24.8% to total company operating income for the recently concluded fiscal year.
Commodity Foods Group
Commodity Foods Group, composed of SURE (Sugar and Renewables) and Flour divisions, posted Php 8.3 billion sales, a
19.0% increase from last year due to higher average selling prices for the sugar business. Combined operating income
increased by 1.5% amounting to Php 3.1 billion. Our Sugar division’s expansion into renewables started contributing to
topline and income with the inauguration of our 100K liters per day bio-ethanol plant in Bais Negros Oriental last November
11, 2014. This segment is currently supplying ethanol requirement to some local oil companies such as Flying V, Sea Oil,
Petron, and Jetti Petroleum among others. We also commissioned our 46MW biomass cogeneration power plant last June
8, 2015 and we are currently exporting around 20MW power to the grid. On the milling business, our Tolong mill expansion
from 3000 to 4000 tons cane per day was also completed and this has increased our total milling combined capacity to
31,000TCD.
Flour registered sales of Php 4.1 billion for the full year, at par with last year due to flattish volumes as well as slightly lower
selling prices.
Agro-Industrial Group
Agro-Industrial Group posted sales of Php 8.9 billion and an operating income of Php 1.2 billion, a growth of 8.9% and 9.7%,
respectively driven by better volumes and lower input prices for our feeds business.
Feeds business posted a topline growth of 21.6% versus last year amounting to Php 4.2 billion. The lower input prices
helped buoy up its operating income which reached Php 479 million, a 46.8% growth versus last year.
On our Farms business, Hogs sales volume increased by 10.7% but this was offset by the decrease in selling prices
resulting to a flattish revenue growth. The decrease in selling prices was due to the increase in market supply. Due to the
volatility of live hogs in terms of selling prices and profitability, we shifted part of our sales to meat cuts and carcass, and
distribution to retail and HRI (Hotels, Restaurants, and Institutions) accounts where prices are relatively more stable. With
consistent quality processes and system, Robina Farms Piggery and Poultry were awarded the Good Animal Husbandry
Process (GAHP), an international certification by the Bureau of Animal Industry, the first for a livestock organization in th e
Philippines.
Looking Ahead: New External Reality Will Define How We Compete
The establishment of the ASEAN Economic Community (AEC) in 2015 is a major milestone in the regional economic
integration agenda in region of ten countries with an estimated population of 600M. Collectively, it will be the third largest
economy in Asia and the seventh largest in the world. It is expected that the region will have a hyper-competitive
marketplace crowded with global multinational, new entrants and existing companies, all with ambitions to build a regional
presence and armed with an aggressive plan to compete. The integration will open an era of the rapid deployment of new
rules and regulations which indicates that organizations must be flexible and agile to adapt world class systems and
processes to maintain competitive advantage. It is also imperative that organizations be staffed with the right mix of talent
that can work in a cross cultural set-up.
It is expected that foreign and intra-ASEAN investments will influx not only capital but also influence new ways of doing
business with new foreign ideas and business practices. As a multinational company, we believe that we are prepared in this
area as we have laid down the foundation in the past years for a structured approach on how we manage supply chain,
branding and marketing, sales and distribution as well as back office support such as IT and Finance, which further delivers
synergies and efficiencies into our business. We have also hired and invested on the right human capital across the
business and have installed and localized management in every market whenever possible.
URC’S STRATEGIC BRAND SHIFT AND EVOLUTION IN THE COMING YEARS
Launch of a New Visual Expression of Our Corporate Identity
From humble beginnings in 1954 as Universal Corn Products with corn starch manufacturing, we have transformed to
become a full pledged and successful food company with market leading brands and spanning the ASEAN and TASMAN
region. Our strong local heritage and unceasing entrepreneurial spirit and grit coupled with strong core values namely
Passion to Win, Dynamism, Integrity and Courage have brought us to where we are today. The world is becoming a smaller
place and markets are now connected and interdependent. Globalization is now the new normal and consequently we are
now articulating our renewed ambition. The URC brand will evolve into a purposeful and contemporary global food brand
with an umbrella of innovative, ownable and consistently managed tiered portfolio of brands, loved and valued by
consumers. With this shift, we are introducing a new visual expression of our corporate identity with the aim of uplifting URC
as a brand that is closer, valuable, visible and meaningful to consumers.
14
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Universal Robina Corporation
As we continue to create value for all our stakeholders, we have likewise reviewed our strategic priorities and directions and
have crafted our 2020 vision as follows:
A leading, respected and recognized corporate brand spanning the PAN-ASEAN- TASMAN region with leading consumer
and household brands in snackfoods and beverages across the mainstream and premium segments.
A stable of leading and cost competitive non- branded foods businesses in the Philippines
providing consistent and robust cash flow generation (food ingredients, renewables and agro-industrial).
Our aspiration is to be a significant PAN-ASEAN-TASMAN multinational with five strong consumer brands namely Jack ‘n
Jill, C2, Great Taste, Griffin’s and Nice & Natural. We will continue our drive on product innovation and scale up our brands
across the markets where we are present. New opportunities are emerging and we believe that the market will further evolve
and will gradually adapt to emerging global consumer trends on indulgence, play-plus, authenticity/provenance, health,
wellness and nutrition. Our thrust on innovation is to maintain our relevance to the target consumer by consistently offering
new and innovative formats, exciting flavors, on-the-go and better-for-you (BFY) products. We have deployed a two pronged
approach on how to build our branded foods business, the first is to maintain our core mainstream brands Jack ‘n Jill for
snackfoods, C2 for RTD tea, Great Taste for coffee as well as launch new brands or replicate existing ones across the
ASEAN. These core mainstream brands will continue to scale up in markets such as Indonesia, Vietnam and Myanmar and
sustain our category leadership in Thailand and the Philippines. The second anchor is the progressive introduction of
Griffin’s brands into Asia starting in FY2016 to build a portfolio of premium brands that will be offered for consumers that are
trading-up, and retailing that is shifting into modern-convenience format. Our two new joint ventures with Calbee and
Danone are also positioned to take advantage of similar trends and we will further invest to build their brand equity and
distribution. We have also integrated new media and digital marketing in our communication strategy as well as executed
brand and consumer activation to make our target customers experience our brands. More than investments in brand
building, we have also earmarked bulk of our CAPEX to build facilities, add capacities and new capabilities in branded
foods.
We will continue to maintain the competitiveness of our non-branded foods businesses in the Philippines with our entry into
renewables, value added offerings for farms and opportunistic expansion in flour and sugar milling.
Our foray into ancillary businesses will start to bear fruit with sales and profit contribution coming from our investments in
bio-ethanol and biomass cogeneration while we maintain the competitiveness of our milling operations for Sugar, Flour and
Feeds. Capacity for sugar milling has been expanded in our Tolong mill while we opportunistically capture further value in
our Flour milling business with our entry into hauling wheat for freight efficiencies. We have also invested in World Class
AAA slaughterhouse and meat fabrication facility that will integrate our processing of live hogs to meat cuts to further add
value on this segment.
Productivity will be a recurring key initiative across the organization to better manage our cost base. We believe that we can
do more with less as we deliberately institute operational efficiencies and measures in the business.
We believe that URC’s regional footprint will be a significant competitive advantage in a single unified economy. With the
decline in tariffs for finished goods to zero, barriers to entry will be collapsed enabling us to enter into new markets or
categories and build our brands. This foray will also present greater challenges as investments in brand building and
defense coupled with distribution expansion will be higher thus better cost management through productivity is a must. We
have begun implementing several initiatives in the organization to further manage our costs - from centralized procurement
to get leverage on suppliers, optimized supply chain to best deliver and handle our products at the least possible cost,
regional manufacturing and sourcing to make our unit cost of production very competitive and shared services for our backoffice functions to manage general and admin expenses better.
In closing,
Throughout more than half a century, URC has established a rich heritage of success led by our visionary founder and
fuelled by an entrepreneurial spirit, ambition to win and culture of innovation. An intimate knowledge of the market has
enabled us to seize opportunities which are met with products of the highest standard within a wide portfolio of locally
recognized and respected brands. The company now has evolved from a local Philippine manufacturer into one of the
largest ASEAN based multinational company.
Your support and confidence have been our sources of inspiration. The journey will continue and we will always strive
harder to deliver value to you, our stakeholders.
Thank you for helping us in showing this greatness to the world.
15
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Universal Robina Corporation
6 Universal Robina Corporation - Locations and Subsidiaries
6.1
Universal Robina Corporation - Head Office
Universal Robina Corporation
110 E. Rodriguez Ave
Quezon
Quezon
Zip: 1110
Philippines
Tel: + 63 2 6337631
Fax: + 63 2 6339207
6.2
Universal Robina Corporation - Other Locations and Subsidiaries
Table 4: Universal Robina Corporation - Subsidiaries
Ricellent Sdn. Bhd.
Shanghai Peggy Foods Co., Ltd.
Lot 36, Plo 370
No.358, Jiajian Highway
Jalan Perak Tiga
Jiading District
Kawasan Perindustrian
Shanghai
Pasir Gudang
China
Malaysia
Advanson International Pte. Ltd.
Tagore Lane 168
Acesfood Network Pte. Ltd.
Singapore
Singapore
Singapore
URC Foods (Singapore) Pte Ltd
URC Vietnam Co. Ltd.
168 Tagore Lane
10 Phan Dinh Giot Street, Ward 2,
Singapore
Tan Binh District,
Singapore
Ho Chi Minh City
Tel: + 65 65520314
Vietnam
Fax: +65 65520127
Tel: + 84 83 9971995
Zip: 787574
Fax: +84 83 9971998
URC (Thailand) Co. Ltd
PT URC Indonesia
122-123 Moo 7
Jl. Sulawesi Blok M-27
Rajpattana Road
MM 2100 Industrial Town
Khwang Sapansung, Khet Sapansung
Cikarang Barat
Bangkok
Bekasi
Thailand
Indonesia
Tel: + 66 2 5174800
Tel: + 62 21 899
Fax: +66 2 5171416
Fax: +62 21 8998
Zip: 10240
Zip: 17530
16
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Universal Robina Corporation
Table 4: Universal Robina Corporation - Subsidiaries
URC China Commercial Co. Ltd
#18 Shangcheng Road
Acesfood Holdings Pte. Ltd
Room 1417 Liang You Bldg.
Singapore
Pudong
China
Bio-Resource Power Generation Corporation
43rd Floor, Robinsons-Equitable Tower
URC Asean Brands Co. Ltd
Adb Avenue, Corner Poveda Road
United Kingdom
Ortigas Center
Pasig City
Philippines
Jiangsu Acesfood Industrial Co., Ltd
Shantou SEZ Shanfu Foods Co., Ltd
51 Huanghai Road
SHANTOU
Binhai Industrial Park
China
Taizhou
China
URC Snack Foods (Malaysia) Sdn. Bhd
URC Hong Kong Company Limited
PLO 370, Jalan Perak Tiga
Unit A-B, 14/F Wing Shan
Kawasan Perindustrian Pasir Gudang
Ind Bldg 428 Cha Kwo Ling Rd Yau Tong
Johor
Kowloon
Malaysia
Hong Kong
Zip: 81700
URC (Myanmar) Co. Ltd.
URC Central Co. Ltd.
Yangon
Vietnam
Myanmar
Siam Pattanasin Co., Ltd.
44,46 Thanon Rat Phatthana Saphan Sung
URC Hanoi Company Limited
Saphan Sung
Vietnam
Bangkok
Thailand
Continental Milling Co. Ltd
Acesfood Distributors Pte. Ltd.
Thailand
Singapore
Guangzhou Peggy Foods Co., Ltd.
Xiamen Tongan Pacific Food Co., Ltd
Nandi E Rd, Panyu
Xiamen
Guangzhou
China
China
Zip: 361100
Source: Canadean
17
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Universal Robina Corporation
Table 5: Universal Robina Corporation - Locations
Universal Robina Corporation
Universal Robina Corporation
40th Floor, Robinsons Equitable Tower
CFC Administration Building
No. 4 ADB Avenue Corner Poveda Street
13 E. Rodriguez, Jr. Avenue
Ortigas Center
Bagong Ilog
Pasig City
Pasig City
Philippines
Philippines
Tel: + 63 2 633763
Tel: + 63 2 6712935
Fax: +63 2 6339207
Universal Robina Corporation
Universal Robina Corporation
UCP Compound
Litton Mills Compound
16 Santiago Street
Amang Rodriguez Avenue
Bagong Ilog
Rosario
Pasig City
Pasig City
Philippines
Philippines
Tel: + 63 2 6718184
Tel: + 63 2 3951142
Fax: +63 2 6710575
Fax: +63 2 3951200
Universal Robina Corporation
Universal Robina Corporation
22nd Floor, Robinsons Equitable Tower
Pasig Boulevard
ADB Avenue corner Poveda Street
Bagong Ilog
Ortigas Center
Pasig City
Pasig City
Philippines
Philippines
Tel: + 63 2 6721578
Tel: + 63 2 6735398
Fax: +63 2 6721581
Fax: +63 2 6733654
Source: Canadean
18
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Universal Robina Corporation
7 Universal Robina Corporation - Business Analysis
7.1
Universal Robina Corporation - Company Overview
Universal Robina Corporation (URC) is a food and beverage manufacturing company based in the Philippines. The
company offers a wide range of snack foods, confectionery, biscuits, grocery and other related products. It also offers flour,
animal feed, meat, poultry and sugar. URC’s beverage portfolio comprises of packaged water, carbonates, still d rinks,
iced/rtd tea and coffee drinks. Apart from these, the company produces and sells Bi-axially Oriented Polypropylene (BOPP)
films for the consumer goods industry. URC markets its products under the brands of Swiss Miss, Nissin’s Cup, Nova,
Chippy, Hunt’s, Quake Bars, Maxx, Yi Yang and C2, among others. The company operates in Philippines, China, Thailand,
Malaysia, Vietnam, Singapore, Hong Kong and Indonesia. URC operates as the subsidiary of JG Summit Holdings, Inc. The
company is headquartered at Quezon City, the Philippines.
7.2
Universal Robina Corporation - Business Description
URC is principally involved in manufacturing and marketing of branded food and beverage products in the Philippines. It
operates as a subsidiary of JG Summit Holdings, Inc. The product portfolio of the company includes snack foods,
confectionery, biscuits, beverage, grocery and other related products. It also offers coffee, flour, feed, meat, poultry, sug ar,
and ready-to-drink products.
The company classifies its business operations into four reportable segments: Branded Consumer Food Products, AgroIndustrial Products, Commodity Food Products and Corporate Business.
The Branded Consumer Food Products (BCF) segment is involved in the production and distribution of salty snacks,
chocolates, candies, biscuits, bakery products, beverages, instant noodles, and pasta and tomato-based products. These
products are marketed under the brands of Hard, Jack ‘n Jill, Nissin, Payless and Hunt’s among others. The company has
flour production capacity of capacity of 1,250 MT per day. This segment also includes the packaging division, URC
Packaging, which is involved in the production of a wide range of bi-axially oriented polypropylene (BOPP) films, primarily
used for packaging of various consumer products.
The BCF segment also produces PET bottles and flexible packaging materials used for packaging various branded food
products. In addition, URC started venturing into renewable energy business including power cogeneration and ethanol
production. In FY2015, the BCF segment reported revenues of PHP10,048.3 million, accounting for 60.2% of the total
revenues.
The Agro-Industrial Products segment is classified into three divisions which involve in hog and poultry farming through
Robina Farms; manufacture and distribution of animal feeds, glucose and soya products through Universal Corn Products;
and production and distribution of animal health products through Robichem. In FY2015, the Agro-Industrial Products
segment reported revenues of PHP276.2 million, accounting for 1.7% of the total revenues.
The Commodity Foods segment is involved in sugar milling and refining through its sugar divisions: URSUMCO,
CARSUMCO and SONEDCO, and flour milling and pasta manufacturing through URC Flour division. The company’s sugar
business operates through five mills and three refineries across the Philippines with a combined capacity of milling 30,000
tons of sugar cane and producing 33,000 bags of refined sugar per day. In FY2015, the Commpdity Foods segment
reported revenues of PHP6,362.8 million, accounting for 38.1% of the total revenues.
Corporate Business undertakes the company’s bonds and securities investment and fund sourcing activities. In FY2015, the
segment did not contribute to the total revenue.
The company principally operates in the Philippines and also has operations in China, Thailand, Malaysia, Vietnam,
Singapore, Hong Kong and Indonesia. In FY2015, the company generated 69.6% from domestic market and the remaining
29.4% from foreign market.
URC operates manufacturing facilities in the Philippines, Vietnam, Thailand, Indonesia, Malaysia and China and sales
offices in Singapore and Hong Kong.
19
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Universal Robina Corporation
8 Universal Robina Corporation - SWOT Analysis
8.1
Universal Robina Corporation - SWOT Analysis - Overview
Universal Robina Corporation (URC) is a food and beverage company based in the Philippines. Dominant market
leadership, broad product portfolio and strong revenue growth are the company’s key strengths, whereas geographical
concentration of revenues remains an area of concern. Going forward, fluctuating raw material prices, stringent regulations
in Philippines and changing consumer preferences could affect the company’s business operations. In the future, strategic
growth initiatives, growing global consumption of functional drinks are likely to provide growth opportunities to the company.
8.2
8.2.1
Universal Robina Corporation - Strengths
Strength - Dominant Market Leadership
The company is a dominant player in the Philippines with leading market shares in most of the product categories it is
involved in. URC is a pioneer in the snack food industry in the Philippines through the launch of Chiz Curls and Chippy.
From this first venture into savory snacks, URC developed the largest and most diverse portfolio of snack food products in
the Philippines. It is the market leader in the snacks, candies, chocolates, cookies, and pretzels markets. The company is a
dominant player in the savory, snacks, candies and chocolates markets, and a significant player in biscuits market, with
leading positions in cookies and pretzels sectors. URC is also the biggest player in the RTD tea market in Philippines. It
holds second position in the coffee and noodles business in the country. The company also holds leading positions in
various categories in Thailand, Malaysia, Singapore, Indonesia, Vietnam, China, and Hong Kong markets. URC has
commenced building its Jack ‘n Jill and C2 mega-brands across the ASEAN as well with a market leading position in both
biscuits and wafers in Thailand and the number one RTD tea brand in Vietnam. Dominant market position enables the
company to attract new customers and venture into new businesses.
8.2.2
Strength - Broad Product Portfolio
URC offers a broad portfolio of convenience food products. The company's food and beverage portfolio includes savory
snacks, biscuits, cakes, candies and chocolates, ready-to-drink teas, juices, bottled water, sports drinks, blended coffee,
creamer, RTD coffee, instant coffee, pasta and noodles, among others . The company’s Packaging Division produces and
sells a wide range of Bi-axially Oriented Polypropylene (BOPP) films that are used for packaging consumer products. URC
is involved in production of branded feeds, and animal health products. It also ventured into the bio-fuel power generation
business. Diversified product portfolio helps the company to reduce the impact of market volatility in one particular product
segment and provides economic stability.
8.2.3
Strength - Strong Revenue Growth
URC’s financial performance improved in FY2015. Overall, the company’s revenue grew at a CAGR of 10.1% during
FY2011-15. The company’s revenue grew by 18.1% to PHP109,051 million in FY2015 as compared to PHP92,376.3 million
in FY2014. This was primarily due to strong performance from the company’s Branded Consumer Foods Group (BCF) and
Commodity Food segment. In FY2015, the BCF segment revenues increased by 7.5% to PHP10,048.3 million, compared to
PHP9,350.2 million in FY2014. The Commpdity Foods segment revenues grew by % to PHP6,362.8 million in FY2015,
compared to PHP6,007.4 million in FY2014. This is also attributed to the completion of the acquisition of 100% equity
interest in New Zealand Snack Foods Holding Limited (NZSFHL). Strong growth in revenue could enhance the company’s
ability to pursue its growth and expansion plans.
8.3
8.3.1
Universal Robina Corporation - Weaknesses
Weakness - Geographical Concentration of Revenues
URC's dependence on limited region may restrict its future growth. URC is headquartered in Philippines and also has
operations in China, Thailand, Malaysia, Vietnam, Singapore, Hong Kong and Indonesia. Majority of its operations including
its R&D center is situated in the Philippines. Furthermore, it is highly dependent on the region for its revenue generation. In
FY2015, the company generated 69.6% of the total revenue from domestic operations, whereas 30.4% from foreign
operations. Therefore, dependence on limited region may impact the company’s operations adversely in case of any political
or economical change.
20
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Universal Robina Corporation
8.4
8.4.1
Universal Robina Corporation - Opportunities
Opportunity - Strategic Expansion Initiatives
URC stands to benefit from its strategic initiatives. In October 2015, the company commissioned a new bar line for Griffin’s
at its plant in Wiri, New Zealand. The new line is expected to augment supply of wrapped snacks and bars. Overall, the
company invested $25 million in its Wiri plant capacity expansion in FY2015. In September 2015, URC entered into a
partnership with KidZania Manila to launch two factories - the Jack ‘n Jill Snack Factory and the Cream-O Cookie Factory for
children. URC launched Chiz King and Cloud9 brands in Indonesia in FY2015. In July 2015, the company’s subsidiary URC
NZ FinCo entered into a sale and purchase agreement with Pacific Equity Partners to acquire 100% equity interest in New
Zealand Snack Foods Holding Limited, the holding company of Griffin’s Food Limited. In February 2015, URC commenced
commercial operations of its joint venture (JV) with Danone Asia Holdings Private Ltd. The two joint ventures are expected
to expand the company’s premium salty snacks and RTD beverage segments. Strategic initiatives not only diversify the
company’s business, but will also provide an edge over its peers, while enhancing revenue generation.
8.4.2
Opportunity - Increase in Global Food Consumption
The company may benefit from increase in global food consumption. According to the estimates of Food and Agriculture
Organization of the United Nations, global per capita food consumption is expected to increase from 2,803 kcal per capita
per day during 1997-99 to 3,050 kcal per capita per day in 2030. Per capita food consumption in developing countries is
estimated to increase from 2,681 kcal per capita per day during 1997-99 to 2,980 kcal per capita per day in 2030. The
company offers a number of food products including snack foods, confectionery, biscuits, beverages, grocery and meat,
among others. Thus, increase in global food consumption may increase demand for the company’s offerings.
8.4.3
Opportunity - Growing Global Consumption of Functional Drinks
URC could benefit from the growing global consumption of functional drinks. According to an in-house research the global
functional drinks market is expected to have significant growth by volumes in future. Functional drinks include carbonates,
bottled water, juices, dairy juices, and tea and coffee. These products provide the consumers a healthy drinking option with
low calories and sugar free variants. The global consumption of carbonates reached 353,167 million liters in 2013, followed
by bottled water (267,986.5 million liters), juices (213,110.9 million liters), dairy drinks (130,150.8 million liters), and tea and
coffee (94,854.1 million liters). The consumption of carbonates is projected to grow at a CAGR of 2.6% during 2013-2018,
followed by bottled water (8.1%), tea and coffee (7.8%), juices (5.8%) and dairy drinks (4%). The company offers a range of
functional drinks including packaged water, carbonates, still drinks and iced/rtdcoffee drinks. Growing global consumption of
functional drinks could increase the demand for the company’s products.
8.5
8.5.1
Universal Robina Corporation - Threats
Threat - Fluctuating Raw Material Prices
The company uses several raw materials for production of snacks and other products and its performance is sensitive to raw
materials price movements. According to Food and Agriculture Organization of the United Nations (FAO), the Food Price
Index averaged 151.8 points in April 2016, an increase of 1.1 points as compared to March 2015, primarily due to strong rise
in prices of vegetable oils and cereals. The average FAO Meat Price Index increased by 1.2 points to 146.6 points in April
2016 as compared to March 2016. The average Vegetable Oils price Index stood at 166.4 points in April 2016 as compared
to 159.4 points in March 2016. According to the World Bank, the average price of cocoa beans increased to US$3,075.7 per
metric ton in April 2016 from US$2,916.4 per ton in February 2016. Such volatility in food products price may affect the
company’s expenditure. In addition, the continuous supply of the raw materials may be affected due to adverse weather
conditions, national emergencies, strikes, governmental controls, natural disasters, supply shortages or due to any other
unexpected events. Thus, the price fluctuations of raw materials may impact the product costs and the operations of the
company.
21
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Universal Robina Corporation
8.5.2
Threat - Stringent Regulations in the Philippines
The company has to abide by stringent regulations and specifications pertaining to its products in its domestic and export
markets. The food and beverage industry in Philippines is regulated by a set of well defined laws and standards.
Enforcement of the food and beverage safety laws and regulations is overseen by the Bureau of Food and Drugs (B FAD)
under the Department of Health (DOH), and the Bureau of Agriculture and Fisheries Product Standards (BAFPS) of the
Department of Agriculture (DA). Under the Food, Drug and Cosmetics Act, BFAD is responsible for the safety of processed
food products while under the Agriculture and Fisheries Modernization Act (AFMA) BAFPS is accountable for safety fresh
and primary agricultural and fisheries products. These agencies regulate the food and drug industry by inspection and
licensing of facilities, registration and market monitoring of products, approval of product label before marketing, and
approval and monitoring of promotions and advertisements. URC is based in the Philippines and has majority of its
operations in the country. The company has to incur significant cost to conform to the regulations and any non conformance
may result in fines and other penalties which may be derogatory to the company’s image.
8.5.3
Threat - Changing Consumer Preferences
Food and beverage industry is an ever changing segment with varied customer preferences. Consumer preferences could
vary with changing trends. The company should anticipate and offer services that appeal as per the changing preference of
consumers. If the company fails to respond to such changes, demand for its products could decline which may affect its
operations. UBC has to be updated about the latest trends to maintain and expand market position. Failing to capture the
latest consumer trends could cause loss of customers for the company.
22
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Universal Robina Corporation
9 Universal Robina Corporation - Company Financial Analysis
9.1
Universal Robina Corporation - Five Year Snapshot: Overview of Financial and
Operational Performance Indicators
The company reported revenue of US$2,563 million during the fiscal year 2015 (2015). The company's revenue grew at a
CAGR of 13.30% during 2011–2015, with an annual growth of 18.04% over 2014. During 2015, operating margin of the
company was 15.83% in comparison with operating margin of 15.15% in 2014. In 2015, the company recorded a net profit
margin of 11.36% compared to a net profit margin of 12.51% in 2014.
Table 6: Universal Robina Corporation - Annual ratios
Key Ratios
Unit/Currency
2015
2014
2013
2012
2011
EPS (Earnings per Share)
PHP
5.68
5.3
4.6
3.7
2.25
Dividend per Share
PHP
3
3
1.5
1.5
1.9
Absolute
1.89
1.77
3.07
2.47
1.18
PHP
29.92
25.65
23.28
21.24
19.77
Gross Margin
%
32.32
30.71
28.67
25.94
24.6
Operating Margin
%
15.83
15.15
12.66
10.75
10.01
Net Profit Margin
%
11.36
12.51
12.4
10.9
6.9
Profit Markup
%
47.76
44.33
40.19
35.03
32.62
PBT Margin (Profit Before Tax)
%
14.45
15.4
14.26
12.9
8.37
Return on Equity
%
18.97
20.66
19.78
16.76
11.37
Return on Capital Employed
%
19.17
24.66
19.78
15.29
14.84
Return on Assets
%
11.18
14.83
15.09
11.07
6.78
Return on Fixed Assets
%
27.33
37.18
30.95
25.16
23.21
Return on Working Capital
%
64.25
73.25
54.79
39
41.15
Sales Growth
%
18.05
14.05
13.75
6.01
16.37
Operating Income Growth
%
23.34
36.55
33.96
13.84
-7.1
EBITDA Growth
%
11.25
23.46
25.44
60.53
-36.02
Net Income Growth
%
7.13
15.07
29.39
67.44
-40.69
EPS Growth
%
6.96
15.78
21.9
63.26
-41.2
Working Capital Growth
%
40.61
2.15
-4.65
20.11
-35.76
Operating Costs (% of Sales)
%
84.17
84.85
87.34
89.25
89.99
Administration Costs (% of Sales)
%
16.01
15.09
15.7
14.63
14.01
Current Ratio
Absolute
2.3
1.9
2.27
1.98
1.71
Quick Ratio
Absolute
1.47
1.13
1.45
1.44
1.25
Cash Ratio
Absolute
0.9
0.5
0.85
1.04
0.9
Debt to Equity Ratio
Absolute
0.42
0.16
0.09
0.32
0.45
Net Debt to Equity
Absolute
0.46
0.18
0.14
0.38
0.47
Equity Ratios
Dividend Cover
Book Value per Share
Profitability Ratios
Growth Ratios
Cost Ratios
Liquidity Ratios
Leverage Ratios
23
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Universal Robina Corporation
Table 6: Universal Robina Corporation - Annual ratios
Key Ratios
Unit/Currency
2015
2014
2013
2012
2011
Absolute
0.3
0.15
0.08
0.3
0.41
Asset Turnover
Absolute
0.98
1.19
1.22
1.02
0.98
Fixed Asset Turnover
Absolute
2.78
2.65
2.64
2.51
2.5
Inventory Turnover
Absolute
4.29
3.9
4.79
4.88
4.76
Current Asset Turnover
Absolute
2.29
2.29
2.42
1.79
1.7
Capital Employed Turnover
Absolute
1.67
1.65
1.6
1.54
1.65
Working Capital Turnover
Absolute
4.06
4.83
4.33
3.63
4.11
Revenue per Employee
PHP
8894864
Net Income per Employee
PHP
1010061
%
5.98
8.33
6.85
7.2
6.79
Debt to Capital Ratio
Efficiency Ratios
Capex to Sales
Source: Canadean
24
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Universal Robina Corporation
9.2
Universal Robina Corporation - Interim ratios
Table 7: Universal Robina Corporation - Interim ratios
Key Ratios
Unit/Currency
Mar-2016
Dec-2015
Sep-2015
Jun-2015
Interim EPS (Earnings per Share)
PHP
1.62
2.17
1.29
1.42
Book Value per Share
PHP
29.89
31.48
29.92
28.37
Gross Margin
%
32.51
34.02
33.28
32.84
Operating Margin
%
14.89
17.15
15.51
16
Net Profit Margin
%
12.38
15.81
10.42
11.8
Profit Markup
%
48.18
51.57
49.88
48.89
PBT Margin (Profit Before Tax)
%
14.82
19.27
14.25
15.1
Operating Costs (% of Sales)
%
85.11
82.85
84.49
84
Administration Costs (% of Sales)
%
17.62
16.88
17.36
16.83
Current Ratio
Absolute
1.58
2.35
2.3
2.13
Quick Ratio
Absolute
0.77
1.59
1.47
1.19
Debt to Equity Ratio
Absolute
0.33
0.42
0.42
0.46
Net Debt to Equity
Absolute
0.37
0.45
0.46
0.51
Debt to Capital Ratio
Absolute
0.27
0.3
0.3
0.33
Equity Ratios
Profitability Ratios
Cost Ratios
Liquidity Ratios
Leverage Ratios
Source: Canadean
9.2.1
Universal Robina Corporation - Financial ratios: Capital Market Ratios
Table 8: Universal Robina Corporation - Capital Market Ratios
Key Ratios
Value
P/E (Price/Earnings) Ratio
35.02
EV/EBITDA (Enterprise Value/Earnings Before Interest, Taxes, Depreciation and Amortization)
28
Enterprise Value/Sales
4.15
Enterprise Value/Operating Profit
26.22
Enterprise Value/Total Assets
4.09
Dividend Yield
0.02
Note: Above ratios are based on share price as of 10-Jun-2016. The above ratios are absolute numbers.
Source: Canadean
25
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Universal Robina Corporation
9.3
9.3.1
Universal Robina Corporation - Financial Performance and Ratio Charts
Universal Robina Corporation - Revenue and Operating margin
The consolidated group revenue of the company for 2015 stood at US$2,563 million, which corresponds to a growth rate of
18.04% over the previous year. The operating margin of the company was 15.83% in 2015, an increase of 68.00 basis points over
the previous year.
Figure 1: Universal Robina Corporation - Revenue and Operating Profit
Source: Canadean
26
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Universal Robina Corporation
9.3.2
Universal Robina Corporation - Asset and Liabilities
The company's assets grew 42.11% over the previous year to US$2,603 million in 2015. The company's liabilities grew 106.98%
over the previous year to US$1,069 million in 2015. The company's asset to liability ratio reduced from 3.55 in 2014 to 2.43 in
2015.
Figure 2: Universal Robina Corporation - Asset and Liabilities
Source: Canadean
27
©Canadean. This product is licensed and is not to be photocopied.
Universal Robina Corporation
9.3.3
Universal Robina Corporation - Net Debt vs. Gearing Ratio
The company recorded higher net debt of US$642 million at the end of fiscal year 2015 when compared to the previous year's net
debt of US$205 million. The company's gearing ratio for the year 2015 was 0.34, which was higher when compared to the
previous year's gearing ratio of 0.00. The gearing ratio remained higher in 2015 due to higher debt funding activities over equity.
Figure 3: Universal Robina Corporation - Net Debt vs. Gearing Ratio
Source: Canadean
28
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Universal Robina Corporation
9.3.4
Universal Robina Corporation - Operational Efficiency
The company's working capital turnover for 2015 declined to 4.06, from the previous year's working capital turnover of 4.83. In
2015, the company's asset turnover declined to 0.98 from the previous year's asset turnover of 1.19.
Figure 4: Universal Robina Corporation - Operational Efficiency
Source: Canadean
29
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Universal Robina Corporation
9.3.5
Universal Robina Corporation - Solvency
In 2015, the company's current ratio increased to 2.30 from the previous year's current ratio of 1.90. The company’s quick ratio
increased to 1.47 in 2015 from the previous year's quick ratio of 1.13. In 2015, the company’s debt ratio increased to 0.25 from the
previous year's debt ratio of 0.11.
Figure 5: Universal Robina Corporation - Solvency
Source: Canadean
30
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Universal Robina Corporation
9.3.6
Universal Robina Corporation - Valuation
As of 10-Jun-2016, the company recorded an EV/EBIT of 26.22, EV/Total Assets of 4.09 and EV/Sales of 4.15.
Figure 6: Universal Robina Corporation - Valuation
Source: Canadean
31
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Universal Robina Corporation
9.4
Universal Robina Corporation - Competitive Benchmarking
The following companies are the major competitors of Universal Robina Corporation:
Danone SA (Ticker: BN)
Del Monte Phil. Inc.
Del Monte Philippines, Inc.
General Milling Corporation
Ginebra San Miguel, Inc. (Ticker: GSMI)
Mars, Incorporated
Perfetti Van Melle USA Inc.
Procter & Gamble Inc.
Republic Biscuit Corporation
San Miguel Corporation (Ticker: SMC)
Suncrest Foods Inc.
32
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Universal Robina Corporation
For competitive benchmarking, latest financial results are considered. Following are the key performance indicators against
which the companies have been benchmarked:
9.4.1
Universal Robina Corporation - Market Capitalization
As of 10-Jun-2016, the company recorded a market capitalization of US$10,302 million, higher than its close competitors San
Miguel Corporation (Ticker: SMC) and Ginebra San Miguel, Inc. (Ticker: GSMI) which recorded market capitalizations of
US$4,506 million and US$83 million respectively. The company recorded earnings per share of US$0.13 in 2015, which has led to
a price/earnings ratio (P/E ratio) of 35.02. This was higher than the P/E ratios of its peers San Miguel Corporation (Ticker: SMC)
and Danone SA (Ticker: BN), which recorded P/E ratio of 31.58 and 29.24 respectively.
Figure 7: Universal Robina Corporation - Market Capitalization
Source: Canadean
Note: Company names are represented by ticker symbols
Bubble size represents Market Capitalization US$ Million
For those data points with negative values, bubbles will not be displayed.
Where the market cap is disproportionately smaller, a bubble may not be displayed.
33
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Universal Robina Corporation
9.4.2
Universal Robina Corporation - Efficiency
The company recorded an operating margin of 15.83% in 2015. This was higher than the operating margins of its peers, San
Miguel Corporation (Ticker: SMC), Ginebra San Miguel, Inc. (Ticker: GSMI) and Danone SA (Ticker: BN), which recorded the
margins of 11.24%, 3.24% and 9.84% respectively. In terms of revenues, the company is 0.16 times of San Miguel Corporation
(Ticker: SMC), 6.59 times of Ginebra San Miguel, Inc. (Ticker: GSMI), and 0.09 times of Danone SA (Ticker: BN).
Figure 8: Universal Robina Corporation - Efficiency
Source: Canadean
Note: Company names are represented by ticker symbols
34
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Universal Robina Corporation
9.4.3
Universal Robina Corporation - Valuation
As of 10-Jun-2016, the company’s EV/EBIT was 26.22. This was higher than that of its peers, San Miguel Corporation (Ticker:
SMC), Ginebra San Miguel, Inc. (Ticker: GSMI) and Danone SA (Ticker: BN), which reported EV/EBIT figures of 10.29, 23.53 and
21.55 respectively.
Figure 9: Universal Robina Corporation - Valuation
Source: Canadean
Note: Company names are represented by ticker symbols
35
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Universal Robina Corporation
9.4.4
Universal Robina Corporation - Turnover: Inventory and Asset
In 2015, the company reported an inventory turnover of 4.29, lower than that of its peers: during the same period, San Miguel
Corporation (Ticker: SMC) and Danone SA (Ticker: BN) recorded inventory turnovers of 7.90 and 8.16 respectively The
company’s asset turnover in 2015 was 0.98, higher than the asset turnovers of its peers: during the same period, San Miguel
Corporation (Ticker: SMC) and Danone SA (Ticker: BN) recorded asset turnovers of 0.54 and 0.69 respectively.
Figure 10: Universal Robina Corporation - Turnover: Inventory and Asset
Source: Canadean
Note: Company names are represented by ticker symbols
36
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Universal Robina Corporation
9.4.5
Universal Robina Corporation - Liquidity
The company reported a current ratio of 2.30 in 2015, higher than the current ratios of its peers: during the same period, San
Miguel Corporation (Ticker: SMC), Ginebra San Miguel, Inc. (Ticker: GSMI) and Danone SA (Ticker: BN) recorded current ratios of
1.32, 0.72 and 0.87 respectively. In 2015, the company's debt to equity ratio was 0.42, lower than that of its peers: during the
same period, San Miguel Corporation (Ticker: SMC), Ginebra San Miguel, Inc. (Ticker: GSMI) and Danone SA (Ticker: BN)
recorded debt to equity ratios of 2.92, 2.13 and 0.81 respectively.
Figure 11: Universal Robina Corporation - Liquidity
Source: Canadean
Note: Company names are represented by ticker symbols
37
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Universal Robina Corporation
10 Universal Robina Corporation - Mergers & Acquisitions and
Partnerships
10.1 Universal Robina Corporation - M&A and Partnerships Strategy
Universal Robina to expand sugar division through local acquisition
Deal Type
Acquisition
Deal Sub Type
Majority Acquisition
Deal Status
Planned
Announced Date
2012-08-28
Deal in Brief
Universal Robina Corporation (URC), a food and beverage products producer based in the Philippines is considering to expand its
sugar division through a local acquisition.
The target company is located near one of URC's existing mills.
Participant Company Information
Company Name
Undisclosed Company
Involvement Type
Target
Company Overview
Universal Robina Corp Plans to Acquire Companies in Southeast Asia
Deal Type
Acquisition
Deal Sub Type
Majority Acquisition
Deal Status
Planned
Announced Date
2016-03-09
Deal in Brief
Universal Robina Corporation (URC), a producer and a distributor of consumer food and beverage products based in the
Philippines, has announced its plans to acquire companies specialized in ‘on-the-go products’, which are convenient, healthy and
indulgent of Southeast Asia.
Participant Company Information
Company Name
Undisclosed Companies
Involvement Type
Target
Company Overview
Universal Robina Acquires Griffins Foods from Pacific Equity Partners
Deal Type
Acquisition
Deal Sub Type
Majority Acquisition
Deal Status
Completed
Announced Date
2014-07-21
Deal in Brief
Universal Robina Corporation, a manufacturer of food products based in Philippines, has acquired Griffins Foods Limited, a Ki wi
producer of biscuits and snacks, from Pacific Equity Partners (PEP), an Australian private equity firm, for a purchase consideration
of approximately NZD700 million (USD607.25 million).
PEP acquired Griffin’s Foods from French food conglomerate Danone in 2006.
Universal Robina reported revenues of (Philippine Pesos) PHP80,995.2 million for the fiscal year ended September 2013.
Participant Company Information
Company Name
Pacific Equity Partners
Involvement Type
Vendor
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Universal Robina Corporation
Company Overview
Pacific Equity Partners (PEP) is a private equity firm. The firm invests in later and expansion stage companies across Australia
and New Zealand focusing on technology, retailing, food and beverages, financial services, equipment and communications.
Company Name
Griffin’s Foods Limited
Involvement Type
Target
Company Overview
Griffins Foods Ltd manufactures and markets of biscuits, crackers and snacks.
Universal Robina Corp to acquire 23% stake in URC International from International Horizons Investment
Deal Type
Acquisition
Deal Sub Type
Minority Acquisition
Deal Status
Announced
Announced Date
2012-08-14
Deal in Brief
Universal Robina Corporation (URC), a food and beverage products producer, has got the approval from the board to acquire a
23% stake in URC International Co., Ltd. (URCI), a consumer food products manufacturer and marketer based in the British Virgin
Islands, from International Horizons Investment Ltd. (IHIL). Both URC and IHIL are based in the Philippines.
The transaction is valued at PHP7,200 million (US$171.18 million).
Participant Company Information
Company Name
URC International
Limited
Company
Involvement Type
Target
Company Overview
URC International Company Limited is a consumer food products producer and marketer based in the British Virgin Islands.
Company Name
International
Investment Ltd.
Horizons
Involvement Type
Vendor
Company Overview
International Horizons Investment Ltd. is based in the Philippines.
Universal Robina Corp sells stake in JG Summit Holdings
Deal Type
Acquisition
Deal Sub Type
Minority Acquisition
Deal Status
Completed
Announced Date
2012-02-03
Deal in Brief
Universal Robina Corporation (URC), a food and beverage products producer, has sold 57,663,430 shares in JG Summit
Holdings, Inc. (JGSH), for approximately US$33.67 million. Both companies involved in the transaction are based in the
Philippines.
JGSH is a company engaged in air transportation, banking, food manufacturing, petrochemicals, real estate, hotels and propert y
development and telecommunications business.
URC has sold the shares as part of the private placement of 215 million existing shares of JGSH by the affiliate companies to
raise US$125 million. The shares were sold at a price of PHP25 (US$0.58) per share.
Participant Company Information
Company Name
Undisclosed Company
Involvement Type
Acquirer
JG Summit Holdings, Inc.
Involvement Type
Target
Company Overview
Company Name
Company Overview
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Universal Robina Corporation
JG Summit Holdings, Inc. (JGSHI) is a holding company based in Philippines. The company primarily offers branded consumer
goods, agro-industrial, and commodity food products, and petrochemicals. JGSHI markets its products under the brands of
Evalene, Nips, Cloud 9, Jack ‘n Jill, Quake, Chooey, and Monster Munch, among others. The company is also involved in the
business of real estate and property development, air transportation services, banking and financial services, telecommunications,
power generation and publishing. JGSHI operates through its subsidiaries Universal Robina Corporation, Robinsons Land
Corporation, United Industrial Corporation, and JG Summit Petrochemicals Corporation, among others. The company has
presence across Philippines, Thailand, Malaysia, Indonesia, China, Hong Kong, Singapore and Vietnam. JGSHI is headquartered
in Pasig City, Philippines.
As a part of its organic growth strategy, in July 2014, the company acquired 100% stakes in NZ Snack Foods Holdings Limited, a
holding company of Griffin’s Food Limited.
NISSIN FOODS HOLDINGS CO Acquires Additional 14% Stake in Nissin-Universal Robina Corp from Universal
Robina Corp
Deal Type
Acquisition
Deal Sub Type
Minority Acquisition
Deal Status
Completed
Announced Date
2014-12-02
Deal in Brief
NISSIN FOODS HOLDINGS CO., LTD., a Japanese producer and seller of instant noodles, has acquired an additional 14% stake
in Nissin-Universal Robina Corporation (Nissin URC), a producer and marketer of instant noodles under the brands, Nissin Cup
Noodles, Nissin Ramen and Nissin Yakisoba, from Universal Robina Corporation (URC), a producer of snack foods and
beverages. Both Nissin URC and Universal Robina Corp are based in the Philippines.
Nissin URC is a joint venture between NISSIN FOODS HOLDINGS CO., LTD. and Universal Robina Corporation.
Following the transaction, NISSIN FOODS HOLDINGS CO increased its stake from 35% to 49% in Nissin URC. Following the
transaction, URC reduced its stake from 65% to 51%.
Participant Company Information
Company Name
Nissin Foods Holdings Co., Ltd. Involvement Type
Acquirer
Company Overview
Nissin Foods Holdings Co., Ltd. (Nissin Foods) is an instant food company, based in Japan. The company is involved in the
production and sales of instant noodles. It offers chilled foods, frozen foods and other products including beverages. Its brand
portfolio includes Nissin Ra-O, Nissin-no-Donbei, Top Ramen, Big Cup Noodles, Nissin–no-Chanpon, Reito Mochitto Nama Pasta,
Myojo Charumera, Nissin No Futomen Yakisoba, Reito Nissin Spa-O Premium, Hap Mei Do and Kai Bei Le, among others. The
company operates across the US, Asia, China and the EMEA region through its subsidiaries and joint ventures. It has production
plants in Japan, the US, Mexico, Thailand, Russia, Philippines, Vietnam, India, Singapore, China and Mexico. Nissin Foods is
headquartered in Osaka-shi, Osaka, Japan.
In FY2014, the company opened the research and development center in the Tokyo, Japan.
Company Name
Nissin-Universal
Corporation
Robina
Involvement Type
Target
Company Overview
Nissin-Universal Robina Corporation is a producer and marketer of instant noodles under the brands, Nissin Cup Noodles, Nissin
Ramen and Nissin Yakisoba, based in the Philippines.
40
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Universal Robina Corporation
Universal Robina Signs Joint Venture Agreement with Danone Asia Holdings
Deal Type
Partnership
Deal Sub Type
Joint Venture
Deal Status
Announced
Announced Date
2014-10-23
Deal in Brief
Universal Robina Corporation (URC), a snack foods and beverages producer based in the Philippines, has entered into an
agreement to form a joint venture (JV) with Danone Asia Holdings Private Ltd., a Singaporean manufacturer and supplier of fresh
dairy products, water, early life nutrition, and medical nutrition.
The JV, named as Danone Universal Robina Beverages, Inc., will be involved in manufacturing, producing and distributing
beverage products in the Philippines.
The JV will have an initial paid-in capital of approximately PHP266 million (USD5.93 million), and will be equally owned by URC
and Danone.
The JV is expected to start commercial operations by 2015.
The transaction is subject to respective board approvals of both URC and Danone.
Participant Company Information
Company Name
Danone Asia Pte. Ltd.
Involvement Type
Target
Company Overview
Danone Asia Pte. Ltd. (Danone Asia) is a producer and marketer of food products and beverages in the Asia-Pacific region. The
company's brand portfolio includes Aqua, Evian and Volvic, among others. (Danone Asia) is headquartered in Singapore.
Calbee to form joint venture with Universal Robina Corp to produce snack foods
Deal Type
Partnership
Deal Sub Type
Joint Venture
Deal Status
Announced
Announced Date
2014-01-30
Deal in Brief
CALBEE, Inc., a Japanese snacks and other food products producer, has announced its plans to form a joint venture with
Universal Robina Corporation (URC), a snack foods and beverages producer, namely Calbee-URC, Inc., a producer and seller of
snack foods. Both URC and Calbee-URC are based in the Philippines.
The joint venture is planned to be a consolidated subsidiary of Calbee during the fiscal year
ending March 31, 2015.
Calbee and URC will own 50% stake each in the joint venture.
Participant Company Information
Company Name
Calbee, Inc
Involvement Type
Target
Company Overview
Calbee, Inc. is engaged in the production and sale of snacks and other food products.
The company also involves in the production and sale of marine and agricultural processing foods, potatoes, cereals, and frozen
foods; production and sale of breads and confectionary; production of frozen dough for breads; real estate leasing and
management; logistics and warehousing; and specialty snack foods packaging.
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Universal Robina Corporation
11 Universal Robina Corporation - Recent Developments
Universal Robina: Enjoy the natural potato goodness of Jack 'n Jill Potato Chips' latest variant
Date : 11 Feb 2016
Fall in love with the delicious and wholesome taste of the new Jack ‘n Jill Potato Chips Classic Plain Salted.
Each chip is made from thinly-sliced 100% real potatoes, fried to a golden crisp and seasoned with just the right amount of salt. Perfect for solo eating or sharing, Jack 'n Jill Potato Chips Classic is sure to give extra potato excitement worth craving for.
Add fun to snack time and savor the delightful potato goodness of Jack 'n Jill Potato Chips Classic Plain Salted flavor. Grab this classic snack at
the nearest groceries and supermarkets nationwide.
Universal Robina: Enjoy an exciting coconut-flavored experience with Fun-O Cococreme
Date : 11 Feb 2016
Enjoy the delicious combination of sweet coconut and crunchy biscuit with Jack ‘n Jill’s newest product, Fun-O Cococreme.
Fun-O Cococreme sandwich cookie oozes with rich coconut filling, topped with coconut shavings, to give biscuit lovers more reasons to crave for
this crunchy treat. This delightful, sweet surprise is the perfect everyday snacks that kids and the young at heart will sure ly enjoy.
Perfect as baon of the kids, meryenda with friends or midnight snack with the family, Fun-O Cococreme, along with Fun-O Chunks Chocolate
and Fun-O Chunks Coconut, are delightful treats that can get one thrilled and hooked.
Jack 'n Jill Fun-O Cococreme is available in packs of four, for only P(SRP). Grab this new biscuit from Jack 'n Jill at leading supermarkets,
groceries and convenience stores nationwide.
Universal Robina: Add a whole new twist to good times with Jack 'n Jill Chippy Twisters
Date : 27 Jan 2016
The barkada’s snacking experience now has a novel twist. Available for a limited time only, Jack ‘n Jill presents the new Chippy Twisters - the
corn chips with the same crunchy goodness that Pinoys have loved for years, but in a new twisted form.
Chippy Twisters comes in two new exciting flavours that are guaranteed to bring the fun to a different level. Its Taco & Spice variant is perfect for
those with a palate for snacks with a kick of spice; while its Cheese & Lemon is best for those who crave for a unique flavou r to tickle their taste
buds.
Whether you're sharing crazy laughter over a silly movie or on the road to your next big adventure, fun times with buddies are best
complemented by Chippy Twisters.
Don't let the gang miss this limited offering from Jack 'n Jill. For only P21.90 (SRP), this go-to barkada treat is exclusively sold in Robinsons
Supermarkets, SM Supermarkets, Puregold, Ministop and Family Mart for a limited time only. Hurry! Get it while it lasts.
Universal Robina: Big bowls of goodness from Nissin Souper Meal for today's go-getters
Date : 27 Jan 2016
Today’s go-getters can look forward to bold, delicious and filling noodles as Nissin launches Nissin Souper Meal, a big serving of insta nt noodles
available in four flavors that range from the classic to the novel.
First in the roster is Nissin Souper Meal Seafood, which offers deep sea delight in a hefty serving. For those who crave an o riental treat, Nissin
Souper Meal Beef Brisket is sure to tickle the taste buds with its rich beef broth.
There is also Nissin Souper Meal Hot & Spicy for those who like to take spiciness a notch higher. This noodle soup is a rich combination of
chicken and mushroom flavors to complement the intense level of spiciness.
The adventurous ones who like to try exciting new offerings are in for a treat with Nissin Souper Meal's Garlic Pork Tonkotsu flavor. Nissin's firstever pork-based variant in a mouthwatering pork and garlic broth providing a perfect explosion of ingredients.
Combining appetizingly rich Japanese noodles, vegetables and meat bits with special soup flavors, Nissin Souper Meal is truly a souper sarap
big bowl of goodness that is convenient and easy to prepare; providing larger servings of great-tasting and satisfying instant noodles for today's
go-getters.
For only P29, satisfy both your taste buds and appetites with the souper sarap goodness of Nissin Souper Meal, available at all lead ing
supermarkets and grocery stores nationwide.
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Universal Robina Corporation
Universal Robina serves Souper Sarap bowls of instant noodles in the Metro
Date : 27 Jan 2016
Get ready to experience Nissin Souper Meal as it brings its Nissin Souper Food Trip to more malls around the Metro.
Inspired by Japan's most famous cultural icons -- the cherry blossoms, lantern festival, Zen garden, and the torii gates from the Fushimi Inari
Shrine -- the Nissin Souper Food Trip is a colorful food avenue where you can taste Nissin's latest product line, Nissin Souper Meal. Following its
launch at Robinsons Place Ermita, this noodle alley will extend its souper sarap experience at Glorietta Mall on January 23 to 24; and Trinoma
Mall on January 30 to 31.
Drop by with your friends and enjoy Nissin Souper Meal's large serving of noodles, vegetables and meat bits. Take a pick from its four flavors Seafood (Nissin's best-selling flavor that captures the goodness of seafood), Beef Brisket (Chinese-inspired beef broth), Hot & Spicy (Chicken
and mushroom flavored-soup base with an intense level of spiciness), and Garlic Pork Tonkotsu (a light, creamy pork soup with a hint of garli c).
All these and its superior convenience and ease in preparation, make for a perfect partner for today's go-getters.
Check out the larger-than-life Nissin Souper Meal installation and join the online guessing game for a shot at special prizes. You can al so try
your luck at the fukubiki game. After trying all four flavors of the delicious instant noodles, you have a chance to draw a c olored ball from the
fukubiki, where certain colors represent a prize you can take home. To top this off, you can earn raffl e entries with every purchase of Nissin
Souper Meal for only P29 per bowl. Lucky winners can win Robinsons gift certificates, iPad minis or a trip to Japan.
Nissin will also bring its appetizing noodle experience to offices in the Metro, this time with its Japanese-themed food carts. Learn more about
this and get the latest updates from the brand by checking out the official Facebook page of Nissin Souper Meal.
Source: Canadean
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Universal Robina Corporation
12 Appendix
12.1 Methodology
Canadean company reports are based on a core set of research techniques which ensure the best possible level of quality
and accuracy of data. The key sources used include:
Company Websites
Company Annual Reports
SEC Filings
Press Releases
Proprietary Databases
Notes
Financial information of the company is taken from the most recently published annual reports or SEC filings
The financial and operational data reported for the company is as per the industry defined standards
Revenue converted to US$ at average annual conversion rate as of fiscal year end
12.2 Universal Robina Corporation - Ratio Definitions
Capital Market Ratios
Price/Earnings Ratio (P/E)
Capital Market Ratios measure investor response to owning a company's stock and also the cost
of issuing stock.
Price/Earnings (P/E) ratio is a measure of the price paid for a share relative to the annual income
earned per share. It is a financial ratio used for valuation: a higher P/E ratio means that investors
are paying more for each unit of income, so the stock is more expensive compared to one with
lower P/E ratio. A high P/E suggests that investors are expecting higher earnings growth in the
future compared to companies with a lower P/E. Price per share is as of previous business
close, and EPS is from latest annual report.
Formula: Price per Share / Earnings per Share
Enterprise Value/Earnings
before Interest, Tax,
Depreciation & Amortization
(EV/EBITDA)
Enterprise Value/EBITDA (EV/EBITDA) is a valuation multiple that is often used in parallel with,
or as an alternative to, the P/E ratio. The main advantage of EV/EBITDA over the PE ratio is that
it is unaffected by a company's capital structure. It compares the value of a business, free of
debt, to earnings before interest. Price per share is as of previous business close, and shares
outstanding last reported. Other items are from latest annual report.
Formula: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / (Net Income +
Interest + Tax + Depreciation + Amortization)
Enterprise Value/Sales
Enterprise Value/Sales (EV/Sales) is a ratio that provides an idea of how much it costs to buy
the company's sales. EV/Sales is seen as more accurate than Price/Sales because market
capitalization does not take into account the amount of debt a company has, which needs to be
paid back at some point. Price per share is as of previous business close, and shares
outstanding last reported. Other items are from latest annual report.
Formula: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Sales
Enterprise Value/Operating
Profit
Enterprise Value/Operating Profit measures the company's enterprise value to the operating
profit. Price per share is as of previous business close, and shares outstanding last reported.
Other items are from latest annual report.
Formula: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Operating Income
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Universal Robina Corporation
Enterprise Value/Total
Assets
Enterprise Value/Total Assets measures the company's enterprise value to the total assets.
Price per share is as of previous business close, and shares outstanding last reported. Other
items are from latest annual report.
Formula: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Total Assets
Dividend Yield
Dividend Yield shows how much a company pays out in dividends each year relative to its share
price. In the absence of any capital gains, the dividend yield is the return on investment for a
stock.
Formula: Annual Dividend per Share / Price per Share
Equity Ratios
These ratios are based on per share value.
Earnings per Share (EPS)
Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding
share of common stock. EPS serves as an indicator of a company's profitability.
Formula: Net Income / Weighted Average Shares
Dividend per Share
Dividend Cover
Dividend is the distribution of a portion of a company's earnings, decided by the board of
directors, to a class of its shareholders.
Dividend cover is the ratio of company's earnings (net income) over the dividend paid to
shareholders.
Formula: Earnings per share / Dividend per share
Book Value per Share
Book Value per Share measure used by owners of common shares in a firm to determine the
level of safety associated with each individual share after all debts are paid accordingly.
Formula: (Shareholders Equity - Preferred Equity) / Outstanding Shares
Cash Value per Share
Cash Value per Share is a measure of a company's cash (cash & equivalents on the balance
sheet) that is determined by dividing cash & equivalents by the total shares outstanding.
Formula: Cash & equivalents / Outstanding Shares
Profitability Ratios
Gross Margin
Profitability Ratios are used to assess a company's ability to generate earnings, based on
revenues generated or resources used. For most of these ratios, having a higher value relative
to a competitor's ratio or the same ratio from a previous period is indicative that the company is
doing well.
Gross margin is the amount of contribution to the business enterprise, after paying for directfixed and direct variable unit costs.
Formula: {(Revenue-Cost of revenue) / Revenue}*100
Operating Margin
Operating Margin is a ratio used to measure a company's pricing strategy and operating
efficiency.
Formula: (Operating Income / Revenues) *100
Net Profit Margin
Net Profit Margin is the ratio of net profits to revenues for a company or business segment - that
shows how much of each dollar earned by the company is translated into profits.
Formula: (Net Profit / Revenues) *100
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Profit Markup
Profit Markup measures the company's gross profitability, as compared to the cost of revenue.
Formula: Gross Income / Cost of Revenue
PBIT Margin (Profit Before
Interest & Tax)
Profit Before Interest & Tax Margin shows the profitability of the company before interest
expense & taxation.
Formula: {(Net Profit + Interest + Tax) / Revenue} *100
PBT Margin (Profit Before
Tax)
Profit Before Tax Margin measures the pre-tax income over revenues.
Formula: {Income Before Tax / Revenues} *100
Return on Equity
Return on Equity measures the rate of return on the ownership interest (shareholders' equity) of
the common stock owners.
Formula: (Net Income / Shareholders Equity)*100
Return on Capital Employed
Return on Capital Employed is a ratio that indicates the efficiency and profitability of a
company's capital investments. ROCE should always be higher than the rate at which the
company borrows; otherwise any increase in borrowing will reduce shareholders' earnings.
Formula: EBIT / (Total Assets – Current Liabilities)*100
Return on Assets
Return on Assets is an indicator of how profitable a company is relative to its total assets, the
ratio measures how efficient management is at using its assets to generate earnings.
Formula: (Net Income / Total Assets)*100
Return on Fixed Assets
Return on Fixed Assets measures the company's profitability to its fixed assets (property, plant &
equipment).
Formula: (Net Income / Fixed Assets) *100
Return on Working Capital
Return on Working Capital measures the company's profitability to its working capital.
Formula: (Net Income / Working Capital) *100
Cost Ratios
Cost ratios help to understand the costs the company is incurring as a percentage of sales.
Operating costs as percentage of total revenues measures the operating costs that a company
Operating costs (% of Sales) incurs compared to the revenues.
Formula: (Operating Expenses / Revenues) *100
Administration costs (% of
Sales)
Administration costs as percentage of total revenue measures the selling, general and
administrative expenses that a company incurs compared to the revenues.
Formula: (Administrative Expenses / Revenues) *100
Interest costs (% of Sales)
Interest costs as percentage of total revenues measures the interest expense that a company
incurs compared to the revenues.
Formula: (Interest Expenses / Revenues) *100
Leverage Ratios
Leverage ratios are used to calculate the financial leverage of a company to get an idea of the
company's methods of financing or to measure its ability to meet financial obligations. There are
several different ratios, but the main factors looked at include debt, equity, assets and interest
expenses.
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Debt to Equity Ratio
Debt to Equity Ratio is a measure of a company's financial leverage. The debt/equity ratio also
depends on the industry in which the company operates. For example, capital-intensive
industries tend to have a higher debt equity ratio.
Formula: Total Liabilities / Shareholders Equity
Debt to Capital Ratio
Debt to capital ratio gives an idea of a company's financial structure, or how it is financing its
operations, along with some insight into its financial strength. The higher the debt-to-capital ratio,
the more debt the company has compared to its equity. This indicates to investors whether a
company is more prone to using debt financing or equity financing. A company with high debt-tocapital ratios, compared to a general or industry average, may show weak financial strength
because the cost of these debts may weigh on the company and increase its default risk.
Formula: {Total Debt / (Total assets - Current Liabilities)}
Interest Coverage Ratio
Interest Coverage Ratio is used to determine how easily a company can pay interest on
outstanding debt, calculated as earnings before interest & tax by interest expense.
Formula: EBIT / Interest Expense
Liquidity Ratios
Current Ratio
Liquidity ratios are used to determine a company's ability to pay off its short-terms debts
obligations. Generally, the higher the value of the ratio, the larger the margin of safety that the
company possesses to cover short-term debts. A company's ability to turn short-term assets into
cash to cover debts is of the utmost importance when creditors are seeking payment.
Bankruptcy analysts and mortgage originators frequently use the liquidity ratios to determine
whether a company will be able to continue as a going concern.
Current Ratio measures a company's ability to pay its short-term obligations. The ratio gives an
idea of the company's ability to pay back its short-term liabilities (debt and payables) with its
short-term assets (cash, inventory, receivables). The higher the current ratio, the more capable
the company is of paying its obligations. A ratio under 1 suggests that the company would be
unable to pay off its obligations if they came due at that point.
Formula: Current Assets / Current Liabilities
Quick Ratio
Quick ratio measures a company's ability to meet its short-term obligations with its most liquid
assets.
Formula: (Current Assets - Inventories) / Current Liabilities
Cash Ratio
Cash ratio is the most stringent and conservative of the three short-term liquidity ratio. It only
looks at the most liquid short-term assets of the company, which are those that can be most
easily used to pay off current obligations. It also ignores inventory and receivables, as there are
no assurances that these two accounts can be converted to cash in a timely matter to meet
current liabilities.
Formula: {(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}
Efficiency Ratios
Fixed Asset Turnover
Efficiency ratios measure a company's effectiveness in various areas of its operations,
essentially looking at maximizing its use of resources.
Fixed Asset Turnover ratio indicates how well the business is using its fixed assets to generate
sales. A higher ratio indicates the business has less money tied up in fixed assets for each
currency unit of sales revenue. A declining ratio may indicate that the business is over-invested
in plant, equipment, or other fixed assets.
Formula: Net Sales / Fixed Assets
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Asset Turnover
Asset turnover ratio measures the efficiency of a company's use of its assets in generating sales
revenue to the company. A higher asset turnover ratio shows that the company has been more
effective in using its assets to generate revenues.
Formula: Net Sales / Total Assets
Current Asset Turnover
Current Asset Turnover indicates how efficiently the business uses its current assets to generate
sales.
Formula: Net Sales / Current Assets
Inventory Turnover
Inventory Turnover ratio shows how many times a company's inventory is sold and replaced
over a period. A low turnover implies poor sales and, therefore, excess inventory. A high ratio
implies either strong sales or ineffective buying.
Formula: Cost of Goods Sold / Inventory
Working Capital Turnover
Working Capital Turnover is a measurement to compare the depletion of working capital to the
generation of sales. This provides some useful information as to how effectively a company is
using its working capital to generate sales.
Formula: Net Sales / Working Capital
Capital Employed Turnover
Capital employed turnover ratio measures the efficiency of a company's use of its equity in
generating sales revenue to the company.
Formula: Net Sales / Shareholders Equity
Capex to sales
Capex to Sales ratio measures the company's expenditure (investments) on fixed and related
assets' effectiveness when compared to the sales generated.
Formula: (Capital Expenditure / Sales) *100
Net income per Employee
Net income per Employee looks at a company's net income in relation to the number of
employees they have. Ideally, a company wants a higher profit per employee possible, as it
denotes higher productivity.
Formula: Net Income / No. of Employees
Revenue per Employee
Revenue per Employee measures the average revenue generated per employee of a company.
This ratio is most useful when compared against other companies in the same industry.
Generally, a company seeks the highest revenue per employee.
Formula: Revenue / No. of Employees
Efficiency Ratio
Efficiency Ratio is used to calculate a bank's efficiency. An increase means the company is
losing a larger percentage of its income to expenses. If the efficiency ratio is getting lower, it is
good for the bank and its shareholders.
Formula: Non-interest expense / Total Interest Income
Source : Canadean
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12.3 Disclaimer
All Rights Reserved
No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means,
electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Canadean.
The data and analysis within this report is driven by Canadean from its own primary and secondary research of public and
proprietary sources and does not necessarily represent the views of the company profiled.
The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the
findings, conclusions and recommendations that Canadean delivers will be based on information gathered in good faith from
both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such Canadean can
accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.
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Reproduced with permission of the copyright owner. Further reproduction prohibited without
permission.
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