San Miguel Pure Foods posts higher revenues

MANILA, Philippines - The food and beverage unit of diversified conglomerate San Miguel Corp. (SMC) posted higher revenues in the first nine months of 2014, driven by robust agro, milling, and dairy businesses.

San Miguel Pure Foods Co. Inc. (SMPF) said revenues in the first three quarters of the year reached P74.4 billion, higher by four percent compared to the same period last year.

Net income, however, was flat year-on-year at P2.7 billion.

SMPF said operating income rose 18 percent to P4.3 billion as favorable selling prices, lower wheat costs and improved availability of key raw materials improved margins of its agro, flour, and dairy businesses.

This also tempered the effects of the Manila port congestion and typhoon Glenda on its operations, the company said.

SMPF’s agro and milling businesses, which make BMEG feeds, Magnolia chicken, Monterey meats, and Baron and King flour, brought in a combined revenue growth of seven percent on account of higher volumes and better selling prices.

Its processed meats business, meanwhile, took a hit from the port congestion problem which started in the second quarter of the year.

The dairy business, however, continued to deliver a strong performance despite increases in the prices some raw materials, the company said.

SMPF expects to breach the P100-billion revenue mark by the end of the year.

“The company is positive that holiday spending would further boost volumes and revenues in the fourth quarter,” it said.