Pure Foods net profit up 6% to P1.8B in H1
The San Miguel conglomerate’s food production arm, 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 31 percent to P2.4 billion in the first six months 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.
Pure Foods added that it had initiated measures to mitigate the impact of currency movements on 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.
Parent San Miguel Corp. had previously reported a plan to sell more shares in Pure Foods as the entry of new investors would allow the company to expand its processed meat operations.
In November, San Miguel sold last year a 15-percent stake in Pure Foods to institutional investors for P6 billion, allowing the firm to raise its public float to about 16 percent, or above the minimum 10-percent requirement of the Philippine Stock Exchange.