San Miguel Pure Foods' Net Income Up 26% to P4.7B
November 09, 2017
San Miguel Pure Foods Company Inc. (SMPFC) sustained its growth momentum in the first nine months of the year with its net income reaching Php4.7 billion, 26% higher than the same period last year. Consolidated revenues went up 5% to Php84.5 billion mainly driven by the strong performance of its Branded ValueAdded and Agro-Industrial businesses.
Combined revenues of the Feeds, Poultry and Meats businesses grew 5% to Php59 billion due to better sales mix and favorable selling prices. Its chicken business was partly affected by the avian flu outbreak detected last August that dampened demand for chicken during the period.
However, its campaign “Mag-siguro, Magnolia” assuring the market that all its farms are avian flu-free and chicken products safe to eat, helped cushion the impact of the outbreak on its sales.
Meanwhile, challenging market conditions continued to weigh on the Milling business. Revenues declined by 3% for year-to-date September to Php7.1 billion. The business, however, remained profitable despite the margin squeeze.
SMPFC’s Branded Value-Added business revenues accelerated 5% to Php19.7 billion, driven mainly by the strong performance of processed meats and spreads. Growth was driven by the core brands and an expansion in mid-priced segments. Continued marketing activities and new product launches also boosted the business’ overall performance.
“With San Miguel Pure Foods’ expansion projects progressing well, the company will be ready to produce more and introduce new products that will cater to the growing demand and changing preferences of our consumers” said SMPFC vice chair Ramon S. Ang.