Pure Foods books 7% profit climb to P2.9B in first nine months

San Miguel Pure Foods Co. Inc. (SMPFC) booked a 7-percent surge in profit in the first nine months of the year, boosting expectations it would sustain growth momentum during the last quarter amid holiday spending. 

In a report to the bourse, the food arm of conglomerate San Miguel Corp. said its net income increased to P2.9 billion in January to September from P2.7 billion during the same period last year.

Consolidated revenues also rose 3 percent year-on-year to P76.6 billion, mainly driven by strong revenues in the feeds and branded value-added businesses. These offset weaker sales in the poultry, meats and flour segments.

Its agro-industrial businesses, consisting of feeds, poultry and Monterey meats, posted combined revenues of P52.7 billion, 3 percent higher than the same period last year.

“Growth came largely from the feeds business as revenues of the poultry and meats business were adversely affected by lower selling prices of chicken and pork due to industry oversupply in the first half of the year,” said SMPFC.

Meanwhile, its milling business posted 4-percent growth in revenues of P7.6 billion despite price rollbacks following the decline in global wheat costs.

SMPFC’s branded value-added businesses, comprised of processed meats, dairy, spreads, biscuits and coffee, generated combined revenues of P17.4 billion, 8 percent higher compared to the same period in 2014.

Its food service business reported a 10-percent revenue growth as it continued to benefit from growth in the local food service industry.

“The company expects to sustain its growth momentum over the remainder of 2015, buoyed by holiday spending and a strong recovery in the agro-industrial businesses,” SMPFC added.