SMPFC Profits Rise 37% in First Six Months Dated August 8, 2016

August 08, 2016

San Miguel Pure Foods Company Inc. (SMPFC) and its subsidiaries sustained its strong performance during the first six months of the year, mainly driven by its Branded Value-Added and Agro-Industrial businesses. Consolidated sales revenue amounted to P53.2 billion, 5% higher than last year, driven mostly by election-related spending. Operating income and net income rose 31% and 37% to P3.6 billion and P2.5 billion respectively.

The Agro-Industrial Business consisting of feeds, poultry & Monterey fresh meats, posted combined revenues of P37.1 billion, 8% higher over the same period last year, benefitting from higher poultry volumes and favorable selling price of chicken and feeds.

Its Milling Business continues to be weighed down by prevailing lower wheat prices. It continues to focus on increasing sales of customized and specialty premixes, which provide more stable margins and limit the impact of wheat price movements to the milling business, the company said.

The Branded Value-Added Business meanwhile posted P12.1 billion in revenues, an 8% growth from last year. Higher volumes from dairy, spreads, processed meats and biscuits, coupled with improved efficiencies and lower material prices, contributed to this growth.

On the other hand, its food service business continues to see growth from out-of-home food consumption and the growing number of convenience stores nationwide.