We’ve seen Universal Robina Corporation (URC) performing better for the past days. It looks like the lockdown is creating something positive for the company. Many investors are buying shares of URC because of the increasing demand for shelf-stable food products like the typical grocery products in supermarkets and grocery stores. The enhanced community quarantine has urged people to stock on food and beverages while the government acts to contain the spread of the COVID-19 virus. This is just one of the positive things brought by the lockdown!
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About 10.11 million shares of URC with P1.03 billion value were traded in the past week, as shown from the data of the Philippine Stock Exchange (PSE). Last Friday, the company’s shares closed at P103 apiece, which is 5.1% higher than the P98 per share a week before. The decline rate of stocks is 27% since the start of 2020. The company is one of those being watched since the general market continues to weaken due to the COVID-19 crisis. Investors expect that the firm will be consistent given the demand for its product portfolio.
People continue to stock up food while the enhanced community quarantine is still in effect. URC has food such as noodles, instant coffee, and snacks. This means that the company will continue to earn and its resiliency will become stable amid the crisis. Although there is a temporary ban for commercial operations, the company rest assured that food production and distribution will not be affected. There will still be business continuity with enough inventory and constant communication with the supplier to address the demand for more food products. URC will perform well throughout the quarantine period because of this.
We can see that the top drivers today are consumer products. Companies that produce consumer goods are not that badly affected because they are the source of the people’s basic needs right now. Companies like URC will have stable financials since the demands are increasing. With this, URC tells the public that food and beverages such as Nissin Cup Noodles, Great Taste coffee, C2 beverages, Magic Crackers, Robina meat and eggs, and Baker John Bread will have a lasting supply until the enhanced community quarantine is lifted.