San Miguel Pure Foods reported 26% jump in profits in 2016 to P6B
San Miguel Pure Foods Company Inc. reported a 26-percent jump in profits in 2016 to P6 billion on the back on the back of the sustained strong performance of its poultry, feeds, and branded value-added businesses.
In a disclosure to the stock exchange, San Miguel Pure Foods said its consolidated revenues grew by only four percent as it was tempered by the downtrend in the selling prices of flour and lower pork prices.
Gross profit growth, however, reached 13 percent because of higher volume, coupled by the improvements in its operational efficiency and lower cost of raw materials.
The higher net income growth can also be attributed to a one-time gain on the sale of investment property.
Revenues from its agro-industrial business that consists of poultry, fresh meats, and feeds grew by five percent to P76.5 billion driven by higher chicken selling prices. Revenues from the feeds business grew by three percent while revenues from its branded value-added business grew by seven percent. The company’s dairy business, which includes spreads and biscuits under Magnolia Inc., reported an eight percent growth in revenues.