MANILA—San Miguel Corp.’s food production unit, San Miguel Pure Foods Co., grew its first semester net profit by 6 percent year-on-year to P1.8 billion as the company sold higher volumes at better prices.
Operating income rose by 31 percent to P2.4 billion in the first six months of the year on the back of a 4-percent increase in consolidated revenues to P47.1 billion.
In a press statement, Pure Foods said combined revenues for its feeds, poultry and meats and flour businesses were 4 percent higher compared to the same period last year. Revenues from the feeds business also improved as the game fowl and aquatic segments posted double-digit growth.
The company also announced that its poultry and meats business had generated better margins and grew revenues by 5 percent in the first semester. Revenues from the flour business, on the other hand, increased by 1 percent.
Meanwhile, its branded and higher-value added businesses grew revenues by 9 percent as all categories posted volume and revenue growth, driven by strong sales of core brands such as Purefoods, Tender Juicy, Star, Magnolia and San Mig Coffee.
“The company also continued to improve its business structure to further accelerate growth in the branded value-added segment. This integration is seen to harness synergies, provide strategic focus, improve operational efficiencies, and deliver better results,” the company said.
Purefoods added that had initiated measures to mitigate the impact of currency movements to its costs.
The company expressed confidence that the measures put in place in the first half of this year would help sustain the gains it has achieved for the rest of the year.