Purefoods posts 37% rise in profit in H1

MANILA, Philippines – San Miguel Pure Foods Co. Inc. (SMPFC), the listed food subsidiary of diversified conglomerate San Miguel Corp., reported a net income of P2.5 billion in the first half, up 37 percent from the previous year on the back of election-related spending.

Consoldiated sales revenue went up five percent to P53.2 billion while operating income rise 31 percent to P3.6 billion.

 “The agro-industrial business consisting of feeds, poultry and Monterey fresh meats, posted combined revenues of P37.1 billion, eight percent higher over the same period last year, benefitting from higher poultry volumes and favorable selling price of chicken and feeds,” SMPFC said.

The branded value-added business registered P12.1 billion in revenues or an increase of eight percent year on year as volumes from dairy,  spreads, processed meats and biscuits grew.

Improved efficiencies and lower material prices, likewise contributed to the increase in income.

The food service business also continues to see growth from out-of-home food consumption and the growing number of convenience stores nationwide.

On the other hand, the group’s milling business continues to be weighed down by prevailing lower wheat prices.  As such, it continues to focus on increasing sales of customized and specialty pre-mixes, which provide more stable margins and limit the impact of wheat price movements to the milling business, SMPFC said.

For the rest of the year, the company expects basic flour prices to remain soft in line with the global market.

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.