Message from the
To our valued
stakeholders,
The 2025 environment where URC operated was uncertain and volatile, with numerous shocks to Asian economies over the year. The “Liberation Day” tariffs of the United States disrupted global free trade and forced export-oriented countries to pivot and adjust. A long-standing territorial dispute between Thailand and Cambodia erupted into open conflict in the middle of the year, impacting trade between the two neighbors. Tax reforms in Vietnam led to temporary but significant disruptions to the general trade and informal sector in that country, affecting consumer companies’ supply chains and routes-to-market. Massive protests took place across Indonesia, with economic frustrations from the youth culminating in civil unrest. And in the Philippines an alleged corruption controversy led to anemic GDP growth in the latter half of the year.
Amidst this challenging backdrop, URC was able to deliver strong volume-driven growth across almost all of its business units. I will leave our President, Irwin Lee, to talk
through the performance of the company in 2025, but it is apt that in a year defined by complexity and rapid change, CLARITY and COURAGE proved more than ideals. Clarity is focus. Courage is decisive leadership. Together, they were the foundation of our decisions and actions throughout 2025.
The years exiting the pandemic were not easy to navigate for URC, with supply chain complexity, macroeconomic weakness, surging inflation, and weaker consumer confidence all contributing to a challenging environment. However, what became clear was that we had to focus on what truly matters and make deliberate choices aligned with long-term value creation.
Clarity and courage create momentum
Over the past year and a half, we resharpened our focus and pivoted towards volume growth. The rollout of the "Lighthouse Strategy" in the Philippine business was a perfect illustration of the clarity of our strategy. We communicated clearly across the organization, from back-office to frontliners, on the need to prioritize our core products, making sure that they remained within reach of our consumers. We emphasized in-store execution and customer satisfaction, and enhanced transparency of results - ensuring that everyone's performance was communicated with precision, honesty, and accountability. Clarity allowed us to move decisively and remain aligned as one organization.
Yet clarity alone is not enough. It must be paired with the courage to act.
Courage is decisive leadership. It is what enabled us to make difficult decisions in 2025, which may not always have been the easiest in the short term, but were necessary to secure our long-term resilience and growth. We took bold steps to reshape parts of our business, as we exited areas and segments that were no longer aligned with our strategic objectives. Furthermore, we strengthened our operational discipline, streamlining our portfolio and prioritizing those brands and products that created clear value for consumers, customers, and the company. That intentional focus on the core led to tough decisions which reflect our commitment to disciplined growth and
our responsibility to allocate capital where it creates the most value.
Courage also defined how we embraced innovation, particularly on our product development processes. Beyond our agile and digital transformation initiatives, we accelerated the rollout of AI tools to support our insighting and concept testing. We emphasized faster development through more rapid iterative processes. By fostering a culture where thoughtful risk-taking is encouraged, we are positioning the company to remain competitive and relevant in the years ahead.
As we look to the future, we recognize that the external environment the company operates in will remain VUCA ("volatile, uncertain, complex, and ambiguous"). The first quarter of 2026 saw hostilities erupt in the Middle East, with a massive disruption to supply chains. This has weighed heavily on the global supply and availability of oil, with direct cost increases to freight and handling, power, and other raw materials. There remain concerns on the second-order impact to the rest of the global economy from the disruption of key inputs such as fertilizer, aluminum, and helium. And it is still unknown how the conflict would affect consumer confidence and purchasing power, particularly if it remains unresolved for an extended period.
However, we are confident in our ability to navigate what lies ahead. With clarity, we will continue to focus on what matters
most. With courage, we will act decisively to seize opportunities and address challenges head-on. Clarity and courage create a complementary environment that allows us to move quickly, guided by our reason for being these past 70 years - to delight everyone with good food choices.
On behalf of the Board and management, we thank our shareholders, partners, and employees for your continued trust and support, and we look forward to the year ahead.
Lance Gokongwei
Chairman
