Swift Foods gains 6.18% in profit to P85.5M in 2007

Swift Foods Inc., the meat and poultry unit of the RFM Group of the Concepcion-Araneta family, reported a net income of P85.49 million last year, up 6.18 percent from P80.51 million in 2006.

In a financial report to the Philippine Stock Exchange, Swift said revenues reached P3.02 billion or 19.03 percent lower than the previous year’s P3.73 billion due to rising cost of raw materials.

With grain prices on the uptend, prices of corn and soybean likewise went up, causing the prices of feed raw materials to increase 15 percent.  Cost of coco oil likewise went up 40 percent.

“These three feed raw materials account for over 80 percent of feed formulation for poultry,” Swift said.

Cost of goods sold amounted to P2.82 billion from P3.38 billion a year earlier.

Swift said it has been able to further reduce its liabilities to P597.46 million from P634.24 million in 2006.

As of end 2007, Swift had total assets of P2.62 billion compared with only P1.87 billion the previous level.  Available cash on hand and in banks is 63.5 percent  of last year due to update of payments to  suppliers.

Accounts receivable decreased 38.8 percent due to collection efforts and shorter terms with customers.  Inventories went down 32.5 percent mainly due to management effort to maintain its policy for finished gods and raw materials.

Swift’s agribusiness division produces and sells poultry products such as live and dressed/ processed  chicken. Dressed chickens branded as “Swift Sariwanok” are sold either whole, cut up into parts and/or customized and marinated according to customer’s requirements.

Swift produces feeds for the internal requirements of its poultry business. It  uses feeds in  its farms and supplies feeds to its contact growers nationwide.