Purefoods profit gains 34% in Q1

MANILA, Philippines - San Miguel Pure Foods Co. posted a net income of P1.2 billion in the first quarter, up 34 percent on the back of higher revenues.

Consolidated revenues rose four percent to P26 billion while EBITDA grew 19 percent to P2.5 billion.

Purefoods’ branded value-added business, which comprises processed meats, dairy, spreads, coffee and biscuits, registered a five percent increase in revenue during the period.  The increase was due to better product mix, improved efficiencies and lower raw material prices in the dairy and spreads businesses.

The firm’s milling business, on the other hand, was weighed down by the continuing downtrend in selling prices of basic flour due to the behavior of wheat prices in the world market.

Purefoods expects basic flour prices to remain soft for the rest of the year.

Given this, the company said it would continue to focus on increasing sales of customized and specialty premixes, which provide more stable margins.

The firm’s board of directors approved a higher cash dividend of P1.50 per share, owing to the company’s strong performance in 2015.

Last year, Purefoods reported a 24 percent increase in net income to P4.8 billion.

 At present, the company offers a broad range of high-quality food products and services to household, institutional and foodservice customers in the Philippines.

Among the brands in its portfolio are Magnolia for chicken, ice cream and dairy products, Monterey for fresh and marinated meats, Purefoods for refrigerated processed meats and canned meats, Star and Dari Crème for margarine, San Mig Coffee for coffee; and B-Meg for animal feeds.