San Miguel Pure Foods net profit grew 4% to P4.2 billion in 2011

MANILA, Philippines—San Miguel Pure Foods Co. Inc. (SMPFC) grew its net profit in 2011 by 4 percent to P4.2 billion as higher volume and selling prices made up for the increase in input costs.

In a disclosure to the Philippine Stock Exchange on Wednesday, SMPFC also reported a 13-percent increase in its revenues to an all-time high of P89.6 billion, which it attributed to “increased demand, aggressive distribution, expansion, introduction of new products and higher export sales.”

Despite a significant increase in input costs, particularly in its agro-industrial cluster, SMPFC reported that income from operations expanded by 4 percent to P6.1 billion in 2011, with significant contributions from its value-added meats, dairy, flour and coffee businesses.

“Profits were boosted mainly by higher volumes, improved efficiencies, a good wheat position, a strong peso, and effective cost reduction across the entire group,” the company said.

SMPFC said nearly all of its businesses posted significant revenue growth due to higher volumes and favorable selling prices. In particular, its processed food business posted a 5 percent growth in revenue, while its feeds business reported an 8-percent revenue growth in commercial feeds.

Revenue growth was also reported across its product brands Magnolia Dairy, Magnolia Ice Cream and San Mig Coffee, which benefited from wider distribution, brand-building initiatives and better selling prices, the disclosure stated.