Liberty Flour Mills profit plummets in 2015
Liberty Flour Mills Inc.’s net income fell by 55-percent fall in 2015 to P165.2 million as sales of its flour and feeds dropped because of stiffer competition.
In a disclosure to the stock exchange, Liberty Flour Mills reported declines in sales from its flour and feeds.
Revenues from bakery flour sales dropped by 27 percent to P1.1 billion from P1.5 billion in 2014 and revenues from mill feed sales fell by 25 percent to P127.6 million from P169.8 million.
The manufacture, distribution and sales of bakery flour is the company’s main business.
The mill feed segment only makes use of the by-product of its flour business. Hence, a decline in its flour business will also result in a fall in its mill feed business.
Its real estate and investment segment, however, reported a 14-percent growth in revenues to P150.9 million from P132 million on the back of a P19.6-million dividend income.
The drop in revenues negated the impact of lower cost of sales and services which the company brought down to P932.4 million from P1.23 billion in 2014.
Liberty Flour Mills slashed part of its overhead expenses, specifically spending on utilities, by some P15 million last year. (By: Eileen A. Mencias)