RESULTS AND DISCUSSION

X Y XY Y2
Year X Net Sales Y XY X2
CounYear Count Net Sales
t
1 1
15,705,503,256.0015,705,503,256.00
15,705,503,256.0015,705,503,256.00 1
246,663,000,000,000,000,000.00
2 2
18,883,254,049.0018,883,254,049.00
37,766,508,098.0037,766,508,098.00 4
356,577,000,000,000,000,000.00
3 3
21,152,115,832.0021,152,115,832.00
63,456,347,496.0063,456,347,496.00 9
447,412,000,000,000,000,000.00
4 4
23,414,734,363.0023,414,734,363.00
93,658,937,452.0093,658,937,452.00 16
548,250,000,000,000,000,000.00
5 5
27,375,877,956.0027,375,877,956.00 136,879,389,780.00
136,879,389,780.00 25
749,439,000,000,000,000,000.00
6 6
31,199,275,746.0031,199,275,746.00 187,195,654,476.00
187,195,654,476.00 36
973,395,000,000,000,000,000.00
7 7
35,183,814,854.0035,183,814,854.00 246,286,703,978.00
246,286,703,978.00 49
1,237,900,000,000,000,000,000.00
8 8
37,720,260,615.0037,720,260,615.00 301,762,084,920.00
301,762,084,920.00 64
1,422,820,000,000,000,000,000.00
9 945,454,500,015.0045,454,500,015.00 409,090,500,135.00
409,090,500,135.00 81
2,066,110,000,000,000,000,000.00
10 10
50,452,959,964.0050,452,959,964.00 504,529,599,640.00
504,529,599,640.00 100
2,545,500,000,000,000,000,000.00
11 11
67,167,630,481.0067,167,630,481.00 738,843,935,291.00
738,843,935,291.00 121
4,511,490,000,000,000,000,000.00
66 66
373,709,927,131.0373,709,927,131.0 2,735,175,164,522.0
2,735,175,164,522.0 506
15,105,600,000,000,000,000,000.00
0 0 0 0

Table XXX. Linear Regression Analysis Computation

With the values, the mean of x values was computed to be:

X́ =
∑ Y = 66 =6
n 11

In addition, the mean of the values of y was computed to be:

Ý =
∑ Y = 373,709,927,131.00 =¿33,973,629,739.00
n 11

Using the values mentioned, the value of b can be computed as follows:

b=
∑ XY −n X́ Ý =4,481,050,924.9818
∑ X 2−n XY´ 2
Also, the value of a was computed to be:

a=Ý −b X́=7,087,324,189.1091

With all the values given for a and b, the regression line analysis formula is as follows:

y=a+bX =7,087,324,189.1091+ 4,481,050,924.9818 X

The regression analysis will be significant in forecasting the service revenue of Universal Robina
Corporation, Inc for the year 2011-2018 by substituting the year to that of the value of x.
 Table XXX. Regression Analysis- Standard Error of Estimate (Computation)

The values presented in the table will be used to solve and come up with the standard error of
estimate. Through this, the standard error of estimate is as follows:

∑ Y 2−a ∑ Y −b ∑ XY
S yx = =4,719,875,385.42
n−2

∑ (Yi−Y ' )2
S yx = =4,719,875,385.42
n−2

Table 4. Demand Forecast and Actual Service Revenue in 2011

FORECAST ACTUAL
2011 60,859,935,288.87 67,167,630,481.00

In the year 2011, the Universal Robina Corporation was able to maximize its operations, surpassing
its forecasted sales of 60,859,935,288.87 with actual net sales of 67,167,630,481. In relation to the
substantial increase of profits in the aforementioned year, the Universal Robina Corporation Annual Report
(2011) discloses that Branded Consumer Food Groups (BCFG) paired with the packaging division, was the
Company’s largest segment contributing about 75.3% of revenues for the FY 2011. Due to this, sales also
had an increase of Php 7.3 billion or 16.9% to Php 50.6 billion in FY 2011. As one of the leading segments,
the packaging division also posted an increase in sales by 90.7% to Php1.8 billion in the year 2011 from
Php928 million recorded in 2010.

Additionally, 2011 was also a banner year for the Branded Consumer Foods International Business
for droving the overall growth for total URC with its all-time high revenues, registering a stellar growth
rate of 39% (in US dollar terms) versus FY 2010 and with almost all countries posting record sales. (JG
Summit Holdings Inc. Annual Report, 2011). Same annual report stated that URC Vietnam, the youngest
company in the group; the fastest growing and biggest contributor to revenues posted a record sale with a
revenue growth of 52% from 2010 to 2011 through achieving strong challenger positions in both ready-to-
drink tea and biscuits and steadily expanding to other products. URC branches in Thailand, Malaysia-
Singapore, Indonesia, and China-Hongkong all posted record sales with revenue growths of 34%, 30%, 12%
and 43% respectively.

Table XXX. Demand Forecast and Actual Service Revenue in 2012

FORECAST ACTUAL
2012 65,340,986,213.85 71,201,677,79
In the year 2012, the corporation posted an actual net sales of Php71,201,677,799, exceeding its forecasted
sales amounting to Php65,340,986,213.85 which is relatively higher by Php5,860,691,585. This is because
the Gokongwei-led food and beverage conglomerate took full control of its overseas operating unit, URC
International Co. (URCI) Ltd., by purchasing the 23-percent stake held by another firm for Php 7.2 billion
(Dumlao, 2012). It was reported that net income from October 2011 to June 2012 rose by 24 percent to
Php6.13 billion due to higher operating income and finance revenue, and significant market-to-market
gains from its bonds and equity holdings.

Moreover, the company has seen improvement in its financial condition in 2012. The company was
able to sustain its growth financially due to the innovation they have been doing in their products. The
strategic expansion to the international market still has been deemed to be imperative in the contribution
to the healthy cash generation of the company (Aleni, 2012). In the same year, Waminal et. al. (2012)
detailed that profitability ratio of URC has good percentage changes through the years from 2012 until the
two succeeding years. The company is selling its inventories/goods higher every year as seen in the gross
profit margin. The company was also having a good status when it comes to their operations because it also
increases every year. This would entail that URC has good operations every year and that the company is
doing well making money from its operations.

Table XXX. Demand Forecast and Actual Service Revenue in 2013

FORECAST ACTUAL
2013 69,822,037,138.83 80,995,215,642

Actual net sales in the year 2013 amounted to 80,995,215,642 which is up by 11,173,178,503
because the forecasted sales in the year was 69,822,037,138.83. This is because JG Summit Holdings, Inc.
Annual Report (2013) mentioned that other than the geographic expansion, the company was also able to
coin its own brands and portfolio throughout the years. BCFG was bannered by Jack ‘n Jill megabrand
which includes the like of renowned brand of snacks like Chippy, Piattos, Magic, Cream-O, Maxx and Cloud
9. These weren’t only recognized in the Philippines but also in Southeast Asian countries. URC was, in that
year, the dominant player in leading market share or significant player in salty snacks, candies, chocolates,
biscuits, cookies, pretzels and more. URC was also the market leader for biscuits and wafers in Thailand.

In the same year, URC has also successfully paved its way in the beverage market with its C2 RTD
tea and Great Taste coffee brand which became notable in other countries such as in Vietnam, making the
products the dominant market leader for ready-to-drink tea in its six key cities. URC also continued its
expansion in other powdered and ready to drink beverage categories as well as being present in the
grocery categories through when it ventured jointly with Nissin of Japan for noodles and Con-Agra for
beans and sauces.

Table XXX. Demand Forecast and Actual Service Revenue in 2014

FORECAST ACTUAL
2014 74,303,088,063.81 92,367,296,512

Table XXX. Demand Forecast and Actual Service Revenue in 2015

FORECAST ACTUAL
2015 78,784,138,988.79 109,051,029,911

Table XXX. Demand Forecast and Actual Service Revenue in 2016

FORECAST ACTUAL
2016 83,265,189,913.77 111,631,792,704

Table XXX. Demand Forecast and Actual Service Revenue in 2017

 FORECAST ACTUAL
2017 P87,746,240,838.75 125,007,824,013

In the year 2017, Universal Robina Corporation obtained net sales of P125,007,824,013 which is
37,261,583,174.25 pesos greater than the forecasted amount of P87,746,240,838.75. The difference is
approximately 29.8% of the actual sales of 2017. Compared to previous year’s sales, the 2017 actual sales
of URC is of higher growth, as reported by the 2017 URC Annual Report. Manageable overall inflation and
favorable forex and acceleration of both supply and demand across regions for the year 2017 resulted in a
rebound of the global growth of URC. With the economic recovery of Thailand, and Vietnam’s low inflation,
has brought URC with increased inflows. Indonesia, however, was quite static because of failed acceleration
of the country’s GDP. Moreover, Philippines remains as a strong growth leader propelled by the country’s
strong private consumption, and as well as substantial contribution of government spending and GDP. URC
expects that the tax reform program implemented in the Philippines can boost consumption for the middle
class but may also result to a slowdown in the lower socioeconomic classes. The company stays vigilant
about these concerns for the coming years of operation as how the management dealt with the challenges
with the company from 2016. URC continues to launch improved products on 2017; on coffee products,
snacks, beverages, as well as its feed products.

Table XXX. Demand Forecast and Actual Service Revenue in 2018

FORECAST ACTUAL
2018 127,769.949,329 92,227,291,763.73

Actual net sales reported in the year 2018 amounted to P127,769.949,329 which is
P35,542,657,565.27 greater than the computed forecast on sales for 2018 which amounted to
P92,227,291,763.73. The 27.8% difference in the sales is relatively lower than that of the previous year by
2%. The forecasted sales for 2018 reflected a much lower amount than that of the actual sales reported on
the annual report of URC for the year but compared to the difference from the previous year, it shows a
decline of 2%.

Universal Robina Corporation had a challenging external environment for the year 2018; input cost
inflation rose, currency devaluations, market slowdown on some of the countries operated, and economic
issues in the Philippines such as sugar tax imposition and other excise tax increases. Nevertheless, URC still
managed to acquire overall growth of 2% compared with the previous year’s data led by growth in its Agro-
Industrial & Commodities products and the strong recovery of its Vietnam business amidst all the
challenges. However, its operating income dropped at 7% versus previous year as the sales for coffee
lowers, expenses for improvement of customer serice and packaging materials hiked, and oil-driven input
cost increases. For continuous and better growth the Universal Robina Corporation continues to accelerate
changes and focus on the issues that hold back the company’s growth.