SMPF Inc.'s Net Income Surges 34% in Q1

May 06, 2016

San Miguel Pure Foods Company Inc. (SMPFC) and its subsidiaries reported strong first quarter results with consolidated revenues reaching P26.0 billion, 4% higher than the same period last year. Net income surged 34% to P1.2 billion while EBITDA rose 19% to P2.5 billion.

SMPFC's Branded Value-Added business, in particular, registered a 5% increase in revenue over the same period last year. Better product mix, improved efficiencies and lower raw material prices in the dairy and spreads businesses contributed to growth.

Its Milling business, however, was weighed down by the continuing downtrend in selling prices of basic flour, which reflects the behavior of wheat prices in the world market.

With basic flour prices expected to remain soft throughout the year, the company said it will continue to focus on increasing sales of customized and specialty premixes, which provide more stable margins.

Its Board of Directors also approved a higher cash dividend of P1.50 per share, owing to the company's strong performance in 2015.