Purefoods posts P2.9-B income on feeds trade

LEADING food group San Miguel Pure Foods Co. Inc. (Purefoods) grew its nine-month net profit by 7 percent year-on-year to P2.9 billion, driven by its branded consumer food and animal feed businesses.

In a regulatory filing, Purefoods reported a 3-percent growth in revenues for the January to September period to P76.6 billion, while operating income expanded by 4 percent year-on-year to P4.5 billion in the same period.

Purefoods said strong revenues from the feeds and branded value-added businesses offset weaker sales in the poultry, meats and flour segments.

Cash flow as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) stood at P6.5 billion for the nine-month period.

Purefoods’ agro-industrial businesses—consisting of feeds, poultry and Monterey meats—registered combined revenues of P52.7 billion, 3 percent higher than the level in the same period last year.

Growth came largely from the feeds business, as revenues from the poultry and meats business were adversely affected by the cheaper prices of chicken and pork. These prices only rebounded in the third quarter, coming from their year-low mark in the second quarter.

The milling business posted a 4 percent year-on-year growth in revenues at P7.6 billion despite price rollbacks following the decline in global wheat costs. Higher volumes cushioned the impact of cheaper priced products.

Purefoods’ branded value-added businesses—comprised of processed meats, dairy, spreads, biscuits and coffee—generated combined revenues of P17.4 billion, 8 percent higher compared to the same period in 2014. This jump in revenues was due to improved selling prices alongside higher sales of processed meats, dairy, spreads and biscuits.

Meanwhile, the food service business reported a 10-percent revenue growth, riding on the growth in the local food service industry.

“The company expects to sustain its growth momentum over the remainder of 2015, buoyed by holiday spending and a strong recovery in the agro-industrial businesses,” Purefoods said.