Purefoods nets P4.7B

San Miguel Pure Foods Co. Inc. (SMPFC) grew its nine-month net profit by 26 percent year-on-year to P4.7 billion on higher earnings from its branded consumer food and agro-industrial businesses.

Consolidated revenues went up by 5 percent year-on-year to P84.5 billion, the company said in a press statement on Friday.

Combined revenues from the feeds, poultry and meats businesses rose by 5 percent to P59 billion due to better sales mix and favorable selling prices. Its chicken business, however, was partly affected by the avian flu outbreak detected last August that dampened demand for chicken during the period.

A campaign to assure that all its farms were avian flu-free and chicken products safe to eat helped cushion the impact of the outbreak on its sales, the company said.

Meanwhile, challenging market conditions continued to weigh on the milling business. Revenues declined by 3 percent year-on-year to P7.1 billion during the nine-month period. The business, however, remained profitable despite the margin squeeze.

The branded value-added business revenues accelerated by 5 percent year-on-year to P19.7 billion, driven mainly by the strong performance of processed meats and spreads. Growth was attributed to the core brands and an expansion in mid-priced segments alongside continued marketing activities and new product launches.

“With San Miguel Pure Foods’ expansion projects progressing well, the company will be ready to produce more and introduce new products that will cater to the growing demand and changing preferences of our consumers” said SMPFC vice chair Ramon S. Ang.