San Miguel Pure Foods net income up 20% to Php1.5B

San Miguel Pure Foods Company Inc. (SMPFC) sustained its strong performance in the first quarter this year, posting a net income of Php1.5 billion, 20 percent higher than last year. (Photo: San Miguel Pure Foods/Facebook)

MANILA—San Miguel Pure Foods Company Inc. (SMPFC) sustained its strong performance in the first quarter this year, posting a net income of Php1.5 billion, 20 percent higher than last year.

Consolidated revenues reached Php26.7 billion, posting a 3 percent growth for the first three months, as the Poultry, Fresh Meats and Value-Added Meats businesses benefited from favorable selling prices.

Operating income grew 16 percent to Php2.1 billion, compared to the Php1.8 billion in 2016, the result of better operational efficiencies and lower costs of some major raw materials.

“We’re off to a strong start and we’re pleased with our first quarter results. This sets our pace for the rest of the year and adds to our overall momentum as we pursue our expansion plans,” said SMPFC Vice Chairman Ramon Ang.

The Agro-Industrial business, composed of Feeds, Poultry and Monterey Fresh Meats, registered combined revenues of Php18.7 billion, up 2 percent over the same period last year.

Meanwhile, revenues from the Poultry and Fresh Meats segments were higher by 4 percent.

Revenues from the Flour Milling business grew 4 percent to Php2.5 billion despite the continued softening of global wheat prices.

Regardless of the margin squeeze, the business remains profitable.

A better sales mix and higher volumes for processed meats resulted to a 3-percent growth in the Branded Value-Added business to Php5.9 billion.

Meanwhile, the food service business continued to benefit from the growing trend of out-of-home consumption and an increase in the number of convenience stores.