processed meat and dairy sales fatten up San Miguel Pure Foods’ profits
San Miguel Pure Foods Company Inc. reported a consolidated net income of P4.8 billion for 2015, 24 percent higher year on year.
In a disclosure to the stock exchange, San Miguel Pure Foods reported an 18-percent jump in its operating income to P7.6 billion because of the strong performance of its feeds, processed meats and dairy businesses.
Sales revenues grew by a modest four percent to P107 billion, reflecting the four-percent growth to P72.6 billion in its agro-industrial business that consists of feeds, poultry, and Monterey meats. The feeds business fed the growth, tempering the impact of the drop in chicken and poultry prices. Lower prices of raw materials also helped bulk up the feeds business.
Revenues from its milling business inched up by three percent to P10.3 billion, with its specialty and customized premixes offsetting the impact of lower flour prices because of the glut in global supply.
San Miguel Pure Foods’ branded value-added business brought home the bacon in terms of revenue growth.
Revenues from San Miguel Pure Foods’ processed meats, dairy, spreads, coffee, and biscuits, expanded by eight percent to P25.7 billion. Higher volumes, better selling prices, new products, and improved distribution pushed the growth.
Its foodservice arm, Great Food Solutions, reported revenues of P12.5 billion, a 10-percent growth from a year ago with the growing preference for out of home consumption. (Eileen A. Mencias)