Purefoods posts lower 2014 income

MANILA, Philippines–Leading food manufacturer San Miguel Purefoods Co. Inc. posted a lower net profit last year compared to 2013, when earnings were boosted by extraordinary gains from the sale of shares in Manila Electric Co.

Net profit for the year hit P3.8 billion or about 7 percent lower than the P4.096 billion posted a year ago.

In 2013, Purefoods booked extraordinary gains from its share in the Meralco stake sold by the San Miguel group to the Gokongwei group.

The company’s revenue rose by 3 percent to P103 billion on higher volumes and better selling prices across most of its businesses.

Operating income rose by 17 percent to P6.5 billion which Purefoods attributed to higher revenues, better efficiencies and lower wheat costs. Cash flow as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) ended at P8.8 billion.

Combined revenue of the agro-industrial and flour milling businesses grew by 6 percent on account of higher volumes and favorable selling prices. Growth was stimulated by the expansion of exclusive franchise outlets such as Magnolia Chicken Stations, Monterey Meat Shops and Kambal Pandesal and Food Service.

Revenue from branded, value-added business rose by 2 percent despite logistical constraints brought about by the congestion in Manila’s main ports, which affected volumes, the company said.

Purefoods said its recent acquisition of the La Pacita brand signaled its entry into the biscuits category in line with its strategy of growing its value-added business.

“The company continues to actively look for opportunities to grow its portfolio through acquisitions,” it said.–Doris C. Dumlao