San Miguel Pure Foods Company Inc. Posts 10% Operating Profit Growth in Q1

May 07, 2015

San Miguel Pure Foods Company Inc. (SMPFC), reported robust first quarter results on the back of higher volumes, better selling prices, and the strong performance of its core brands.

Consolidated revenues for the first three months of the year reached P25.1 billion, a 4% growth over the same period last year. Operating income grew by 10% to P1.47 billion driven by the strong performance of the flour and feeds businesses, while net income also improved by 7% at P911 million.

Its Agro-Industrial businesses posted a combined revenue growth of 4%, on account of higher volumes and better selling prices, particularly in the Feeds business. While pork prices remained stable, a glut in poultry supply led to a slowdown for the Poultry and Meats business.

Higher flour sales volume and additional revenue from the company's new grain terminal resulted to a 6% growth in revenue for the flour milling business.

Combined revenues for the Branded, Value-Added Businesses grew 11%, led by its core brands Purefoods, Magnolia, Star and Dari Crème. The processed meats business, in particular, experienced a 13% revenue growth driven mainly by the hotdog category.