Pure Foods income surges 24% to P870 M in Q1

MANILA, Philippines - Strong sales and higher selling prices allowed the food and beverage unit of diversified conglomerate San Miguel Corp. (SMC) to post significant earnings growth in the first three months of the year.

In a disclosure, San Miguel Pure Foods Co. Inc. (SMPF) said its net income surged 24 percent to P870 million while consolidated revenues rose five percent to P24.2 billion in the first quarter from a year ago.

The growth was driven by the “higher volume, better selling prices and improved efficiencies,” SMPF said.

The commodity business recorded a nine percent revenue growth on the back of higher turnover and improved selling prices while exclusive retail outlets contributed to the volume growth, SMPF said.

For its part, the branded value-added business, behind core brands Purefoods, Tender Juicy, Magnolia and San Mig Coffee, said it generated a combined revenue growth of four percent, carried by the double-digit uptick of Magnolia dairy, fats and oils, and coffee segments, SMPF said.

The international business, through operations in Indonesia, sustained its recovery with the introduction of new products, the listed food company said, adding that the export business posted continuous growth due to the expansion to new territories and markets.

Last year, SMPF inaugurated its P3-billion grain terminal in Batangas that will allow the company to enjoy lower freight costs and terminal fees.

SMPF declared yesterday a P20 per share cash dividend to holders of preferred shares as of May 22, payable on June 3.

Parent firm SMC is into power (SMC Global Power Corp.), beer (San Miguel Brewery Inc.), packaging (San Miguel Yamamura Packaging Corp.), liquor (Ginebra San Miguel Inc.), petroleum (Petron Corp.), airline (Philippine Airlines) and various infrastructure projects nationwide.