Pure Foods earns 16% more at P6.9 billion in 2017

MANILA, Philippines — San Miguel Pure Foods Co. Inc. (SMPFC), the listed food company of diversified conglomerate San Miguel Corp., grew its net income by 16 percent to P6.9 billion last year.

This was driven by higher volumes from poultry, fresh meats and branded value-added businesses.

SMC president Ramon Ang said the company would continue to come up with new offerings as part the company’s expansion plans.

 “Moving forward, as we strive to further strengthen our market leadership, we will continue to grow our product offerings. We’re very much encouraged by the positive response that our new products have received from consumers,” Ang said.

Ang said the company would boost its capacity to meet long-term growth targets and continuously provide for the growing and evolving needs of its customers.

Total operating income grew 11 percent to P9.9 billion, boosted by improved operational efficiencies.

Consolidated revenues increased by five percent to P117 billion.

Combined revenues from the feeds, poultry and fresh meats rose six percent on the back of better sales mix and favorable prices of chicken and fresh meats.

Meanwhile, the milling business remained affected by the continued deceleration of global wheat prices. Revenues declined by three percent, but the business remained profitable despite the margin squeeze.

SMPFC’s branded value-added business continued to grow, driven primarily by the strong performance of processed meats, the launch of new products, and intensified brand-building activities. Revenues for this segment grew six percent.

At present, SMC is in the process of consolidating its food and beverage businesses into SMPFC which will be renamed San Miguel Food and Beverage Inc.

This will be done through a P336 billion swap of its shares in beer and other beverage business.