Corporate News

Pure Foods nets P3.1 billion in 1st half

Posted on August 10, 2017

SAN MIGUEL Pure Foods Company, Inc. (SMPFC) on Wednesday said profits soared 26% in the first six months of 2017, amid higher volumes and better selling prices for its poultry and fresh meats, and branded processed meat products.

In a statement on Wednesday, SMPFC said its net income hit P3.1 billion during the January to June period. While the company attributed the robust earnings to “higher-than-expected” second quarter performance, it did not disclose the exact figures.

Consolidated revenues went up 5% to P56 billion, which was attributed to “higher volumes and favorable selling prices for the branded value-added and agro-industrial businesses.”

Operating income rose 24% to P4.5 billion in the first half, amid a drop in costs of some raw materials, a better sales mix and improvements in operational efficiency.

By segment, the Agro-Industrial business, which includes feeds, poultry, and Monterey Fresh Meats, recorded P39.5 billion in revenues, a 6% uptick from the previous year.

“Higher volumes and favorable selling prices for the Poultry and Fresh Meats segments continued to boost the business’ performance. The feeds segment, on the other hand, remained stable,” SMPFC said.

Revenues for the branded value-added business rose 4% to P12.6 billion, due to better sales mix, higher volume from processed meats segment and market expansion.

On the other hand, revenues from the milling business dipped 2% to P4.6 billion, amid stiff competition and soft global wheat prices.

“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 Corporation President and Chief Operating Officer Ramon S. Ang was quoted as saying in a statement.

Shares in SMPFC were unchanged at P311 each on Wednesday. -- CRAG