SMC food unit posts 24% profit growth

San Miguel Pure Foods Co. Inc. grew its net profit last year by 24 percent to P4.8 billion led by the growth in its feeds, processed meats and dairy businesses.

Consolidated revenue for the year rose by 4 percent to P107 billion, boosting operating income by 18 percent to P7.6 billion, the food unit of conglomerate San Miguel Corp. told the Philippine Stock Exchange.

Cash flow as measured by earnings before interest, taxes, depreciation and amortization increased by 17 percent to P10.3 billion.

Purefoods’ agro-industrial business – consisting of feeds, poultry and Monterey meats—grew business last year by 4 percent to P72.6 billion.

“The growth came mainly from its feeds business, which tempered the effects of a decline in chicken and poultry prices during the year. The business also benefited from lower prices of some of its major raw materials,” the company said in a statement.

Revenue of the company’s milling business rose by 3 percent to P10.3 billion due to increased revenue from its grain terminal operations and higher flour volumes, particularly in specialty and customized premixes.

The branded value-added business grew by 8 percent to P25.7 billion. This segment includes processed meats, dairy, spreads, coffee and biscuits.

“Higher volumes, better selling prices, new products, and improved distribution fueled this growth,” the company said.

The food group’s food service arm, Great Food Solutions, benefited from what the group described as “growing preference for out-of-home consumption.”  This unit registered revenue amounting to P12.5 billion, marking a 10-percent increase over previous year. Doris Dumlao-Abadilla