Poultry, fresh meats business beef up San Miguel Purefoods’ net profit by 24% to P4.75B in 2015
San Miguel Purefoods Company Inc. reported a 24-percent jump in consolidated net income to P4.75 billion last year, fattened up by the strong performance of its agro-industrial unit that consists of its poultry and fresh meats business as well as its feeds business.
In a disclosure to the stock exchange today, San Miguel Purefoods attributed the growth in its net profits to higher operating income, lower net financing charges and a one-time gain on the sale of an investment property.
San Miguel Purefoods’ poultry and fresh meats business, together with its feeds business, generated P72.6 billion in revenues and raked in P1.8 billion in net profits.
The group reported an eight-percent profit growth with the strong performance of its feeds business and the recovery of chicken prices in the third quarter of the year.
Its processed meats business from the Purefoods-Hormel Company Inc. reported a 36-percent improvement in its operating income to P1.3 billion and fed P867 million into the group’s net income.
The unit’s better performance was attributed to better selling prices, higher volume of sales from its core products and incremental volume from new products that was coupled with improved efficiencies.
The company’s milling segment generated only P10.2 billion in revenues in 2015 but plumped the group’s net income by P1.5 billion. The company reported increased sales volume of flour and higher service revenues from its grain terminal.
The segment, however, reported a 10-percent drop in operating income because of the drop in flour selling prices because of the fall in global wheat prices and competitive pressures from cheaper imported flour and the entry of new players.
The group’s dairy, spreads and biscuits business which is under Magnolia Inc., reported a 13-percent increase in revenues because of better selling prices and higher volumes of cheese, margarine, and ice cream. The company also reported incremental revenues from La Pacita biscuits which it acquired in February 2015.
The softening of prices of some raw materials also helped improve its profit growth.
The group’s coffee interests under San Miguel Super Coffeemix Co. Inc. reported lower volume and revenues in 2015. It said it was affected by the phase out of slow-moving variants and increased pressure from other players who spend aggressively on advertising to promote their products. (By: Eileen A. Mencias)