Purefoods nets P3.1B

The food production arm of conglomerate San Miguel Corp. grew net profit in the first semester by 26 percent year-on-year to P3.1 billion on higher earnings from its branded food and agro-industrial businesses.

San Miguel Pure Foods Company Inc.(SMPFC) reported consolidated revenues of P56 billion, up by 5 percent year-on-year due to higher volumes and favourable selling prices for the branded value-added and agro-industrial businesses.

SMPFC also reported lower costs on some major raw materials, a better sales mix, and improved operational efficiencies that resulted in its operating income growing by 24 percent year-on-year to P4.5 billion in the first half.

The agro-industrial business – composed of feeds, poultry, and Monterey fresh meats – registered combined revenues of P39.5 billion, up by 6 percent over the same period last year.

The company also reported higher volumes and favorable selling prices for the poultry and fresh meats segments.

SMPFC said the feeds segment, on the other hand, remained stable.

The milling business contributed P4.6 billion in revenues, 2 percent lower than last year, as soft global wheat prices and intense industry competition, gnawed on operations.

Revenues from the branded value-added business reached P12.6 billion, marking a 4-percent increase from last year, as a result of better sales mix, increased volumes from the processed meats segments in all sales channels, and continued market expansion.

“With our expansion projects in full swing, we expect to be able to produce more product offerings to meet the increasing demand and varying needs of our consumers,” San Miguel Corp. president and chief operating officer Ramon S. Ang said.