Purefoods posts P2.7B in 9-month profit

Screengrab from sanmiguelpurefoods.com

MANILA, Philippines–San Miguel Purefoods posted a nine-month net profit of P2.7 billion, or almost the same as the year-ago level, as the Manila port congestion and Typhoon “Glenda” gnawed on overall earnings.

Revenue was up by 4 percent year on year to P74.4 billion in the nine-month period and is on track to breach P100 billion for the full year, Purefoods said in a statement Wednesday.

Growth in revenue was driven primarily by its agro, milling and dairy businesses.

Operating income grew by 18 percent year on year to P4.3 billion, as favorable selling prices, lower wheat costs and improved availability of key raw materials resulted in better margins, tempering the adverse impact of the Manila port congestion and typhoon Glenda on operations.

The agro and milling businesses—producer of BMEG Feeds, Magnolia chicken, Monterey meats and Baron and King flour—delivered a combined revenue growth of 7 percent on account of higher volumes and better selling prices.

Purefoods’ cash flow as measured by earnings before interest, taxes, depreciation and amortization amounted to P6.2 billion for the nine-month period.

The company said sales volumes of Magnolia chicken would have been much higher had it not been for Typhoon Glenda which affected its broiler supply in the third quarter.

In the meantime, the branded value-added businesses—referring to manufacturing operations—posted a combined revenue growth of 2 percent.

“The processed meats business took a hit from the port congestion problem which started in the second quarter of the year,” the company said.

Purefoods is upbeat that holiday spending would further boost volumes and revenues in the fourth quarter.