Purefoods net profit up 7% to P2.9 B in January-September

MANILA, Philippines - Food giant San Miguel Pure Foods Co. Inc. posted a seven percent rise in its nine-month net profit  to P2.9 billion, mainly driven by a growth in its feeds and branded value-added businesses.

In a statement, Purefoods said its  consolidated revenues reached P 76.6 billion from January to September, up three percent year-on-year.

Operating income went up by four percent to P4.5 billion.

The improved performance of the company’s feeds business made up for the slack in the poultry, meats and flour segments which were adversely affected by lower selling prices of chicken and pork due to industry oversupply in the first half.

The group’s agro-industrial businesses, consisting of feeds, poultry and Monterey meats, registered combined revenues of P 52.7 billion, three percent higher than the same period last year.

Prices of chicken and pork rebounded in the third quarter, coming from their year-low mark in the second quarter.

Meanwhile, Purefoods’ milling business posted a four percent  growth in revenues to  P7.6 billion despite price rollbacks following the decline in global wheat costs. Higher volumes cushioned the impact of lower prices.

The increase was  attributed to improving sales of higher-priced customized premixes.

The  branded value-added businesses comprised processed meats, dairy, spreads, biscuits and coffee generated combined revenues of P17.4 billion,  up eight percent from a year ago level.  The increase was due to to better-selling prices and increased sales volume.

The food service business, meanwhile, saw a 10 percent rise in revenues as it continued to benefit from growth in the local food service industry.

Purefoods  expects to sustain its upward trajectory for the remainder of 2015, buoyed by holiday spending and a strong recovery in the agro-industrial businesses.