Purefoods’ H1 profit up 5% to P1.8B

LOCAL food giant San Miguel Pure Foods Co. Inc. posted a 5-percent growth in first semester net profit to P1.8 billion led by a double-digit expansion in the processed food business.

Consolidated revenues rose by 3 percent year-on-year to P50.5 billion for the first six months, driven mainly by growth in Purefoods’ feeds, processed meats as well as dairy and spreads businesses. “This growth was achieved despite lower selling prices for poultry due to industry oversupply,” the company said in a press statement on Thursday.

Purefoods’ operating income grew by 2 percent year-on-year to P2.7 billion, as the feeds and branded value-added or processed businesses generated higher sales volumes, improving overall margins for the food group.

Cash flow as measured by earnings before interest, taxes, depreciation or amortization (EBITDA) was also higher at P4.1 billion.

The agro-industrial and flour businesses registered a 2-percent year-on-year growth in revenues, driven by higher volumes. On the other hand, the company said the poultry and fresh meats segments had declined due to a glut and lower demand caused by the extreme summer weather.

“The company anticipates improvement in the poultry and meats segments in the second half, as oversupply and climate conditions are expected to ease,” Purefoods said.

The processed food business likewise grew by 11 percent from the same period last year, driven by the strong performance of brands such as Purefoods, Tender Juicy, Star, alongside new offerings Purefoods Sexy Chix, Purefoods Ready-to-Eat Fried Chicken, Purefoods Chicken Nuggets and Magnolia Ice Cream Best of the Philippines line. Coupled with lower cost of raw materials, the segment posted a 20 percent year-on-year jump in operating income.

The food retailing unit also reported strong sales across its channels, namely convenience stores, restaurants, and bakeshops.