San Miguel Pure Foods posts 20% growth in Q1 net profit

The food unit of conglomerate San Miguel Corp. posted a 20-percent year-on-year growth in net profit in the first quarter to P1.5 billion on higher volume and selling prices alongside lower cost inputs.

San Miguel Pure Foods Co. Inc. (SMPFC) reported consolidated revenues of P26.7 billion, up by 3 percent for the first three months, as the group’s poultry, fresh meats and processed meat businesses benefited from favorable selling prices.

Operating income grew by 16 percent to P2.1 billion, attributed to better operational efficiencies and lower costs of some major raw materials.

“We’re off to a strong start and we’re pleased with our first-quarter results. This sets our pace for the rest of the year and adds to our overall momentum as we pursue our expansion plans,” said SMPFC vice chair Ramon S. Ang.

The agro-industrial business—composed of feeds, poultry and Monterey fresh meat—registered combined revenues of P18.7 billion, up 2 percent year-on-year. Meanwhile, revenues from the poultry and fresh meats segments were higher by 4 percent.

Revenues from the flour milling business expanded by 4 percent to P2.5 billion despite the continued softening of global wheat prices. Regardless of the margin squeeze, the business remained profitable, SMPFC said.

A better sales mix and higher volumes for processed meat resulted in a 3-percent year-on-year growth in the branded manufactured food business to P5.9 billion.

Meanwhile, the food service business continued to benefit from the growing trend of out-of-home consumption and an increase in the number of convenience stores, the company said. —DORIS DUMLAO-ABADILLA