San Miguel Pure Foods' first Half Net Income Surges By 26% to P3.1B
August 09, 2017
San Miguel Pure Foods Company Inc.’s (SMPFC) net income surged to Php 3.1 billion for the first half of the year, a 26% increase from the same period last year, attributed to higher-than-expected second quarter performance.
Consolidated revenues rose 5% to Php56 billion, driven mainly by higher volumes and favourable selling prices for the Branded Value-Added and AgroIndustrial businesses.
With lower costs on some major raw materials, a better sales mix, and improved operational efficiencies, operating income grew 24% to Php4.5 billion.
SMPFC’s Agro-Industrial business, composed of Feeds, Poultry, and Monterey Fresh Meats, registered combined revenues of Php39.5 billion, up 6% over the same period last year. Higher volumes and favorable selling prices for the Poultry and Fresh Meats segments continued to boost the business’ performance. The feeds segment, on the other hand, remained stable.
The Milling business meanwhile contributed Php4.6 billion in revenues, 2% lower than last year, as soft global wheat prices and intense industry competition, continued to weigh it down.
Revenues for the Branded Value-Added business reached Php12.6 billion, a 4% increase from last year, as a result of better sales mix, increased volumes from the processed meats segments in all sales channels, and continued market expansion. “With our expansion projects in full swing, we expect to be able to produce more product offerings to meet the increasing demand and varying needs of our consumers,” San Miguel Corporation president and chief operating officer Ramon S. Ang said.