Pure Foods sets P1.5-billion investment budget for 2000

Pure Foods Corp., the food unit of the Ayala Group, intends to pursue a P1.5-billion investment spree this year aimed at possible acquisitions, expansion of product lines and penetration of more markets nationwide.

In a briefing after the company's stockholders meeting yesterday, Pure Foods president Renato Montemayor said the capital buildup, to be sourced through a mix of internal cash generation, bank borrowings and tapping the capital markets, would be a clear message that "the company is not for sale," amid reports that a big local firm (presumably San Miguel Corp.) is interested in taking a stake in Pure Foods.

While he admitted that there have been several offers to buy into the company, mostly from regional players and recently from local companies, all these talks have been effectively quashed as Pure Foods continues to expand and perform well financially.

Despite the general weakness in the economy as evidenced in soft consumer demand last year, the company generated sales revenues of P10.638 billion, nine percent more than the P9.778 billion in the previous year. Due to the spin off of its meat division into the Pure Foods-Hormel Co. and the additional equity investments in several other subsidiaries led by the Burger King chain, Pure Foods' bottomline dropped 20 percent to P727.755 million from the P910.575- million profit made in 1998.

Montemayor said the P1.5-billion cash chest includes P500 million for capital expenditures while around P1 billion will be used to back up possible acquisition targets which he did not identify. --