Philippine Stock Market Research

URC’s 2016 Results and 2017 Outlook

January 29, 2017

Our Company Report this week is URC.  It released its 2016 financial results.  Sales grew only by single-digits.  The last times these occurred were in 2007 and 2012.  EBITDA likewise deteriorated slightly on higher opex.  URC’s bottom-line though was fortified by non-recurring gains.

URC was plagued by the Vietnam lead content issue and higher debt levels in 2016.  This year will be a “slowdown” as 2016 sales were boosted by the election campaigning period in 1H16.

Still, URC has a stable balance sheet with a big room for debt if it does need it.  Debt previously rose on overseas acquisitions of businesses like New Zealand-based biscuit-maker Griffin’s.

URC generously pays half of net income as cash dividends, and the projected increase in net income until 2018 is seen to enrich yields.

Disclaimer

This report is solely for information. It should not be constituted as an offer for solicitation for the purchase or sale of securities mentioned. The information herein has been obtained from sources believed to be reliable. Whilst every effort has been made to ensure accuracy, we do not guarantee the accuracy or completeness of the report. All opinions and estimates expressed herein constitute our judgment as of this date made on a reasonable basis and are subject to change without notice. No liability can be expected for any loss arising from the use of this report or its contents. As this is general information, it does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may obtain this report.  Pictures in this report cannot be copied or redistributed and are owned by Corpecon Research.