Pure Foods profit grows 20% in Q1

MANILA, Philippines -  San Miguel Pure Foods Co. (SMPFC) reported a 20 percent rise in its net income to P1.5 billion in the first three months of the year, driven by revenue growth across its business segments.

In a statement, SMPFC said consolidated revenues inched up three percent to P26.7 billion mainly due to favorable selling prices of its poultry, fresh meats and value-added meats businesses.

The company’s agro-industrial business, composed of feeds, poultry and Monterey fresh meats, registered combined revenues of P18.7 billion, up two percent year-on-year.

SMPFC added that it’s poultry and fresh meats segments posted a four percent increase in revenues.

Revenues from its flour milling business grew four  percent to P2.5 billion despite the continued softening of global wheat prices.

“Regardless of the margin squeeze, the business remains profitable,” SMPFC said.

The company’s branded value-added business registered a three percent increase to P5.9 billion, as a result of better sales mix and higher volumes for processed meats.

“The foodservice 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.

It added that operating income grew 16 percent to P2.1 billion due to better operational efficiencies and lower costs of some major raw materials.

SMPFC vice chairman Ramon S. Ang expressed confidence the company would sustain its growth in the coming quarters.

 “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,” Ang said.