San Miguel Pure Foods Sustains Strong Performance in 2013
March 26, 2014
San Miguel Pure Foods Company, Inc. (SMPFC), the food subsidiary of diversified conglomerate San Miguel Corporation, registered consolidated revenue of P99.8 billion for 2013, a 4% increase over last year. The growth was driven by the strong performance of its core brands.
Operating income likewise improved by 6% at Php 5.5 billion, while net income attributable to equity holders of the Parent company was Php 4.1 billion.
The Agro-Industrial Cluster registered a 4% increase in operating income driven by improvement in margins.
The feeds business grew its revenue by 3% due to higher selling prices as a result of better sales mix. On the other hand, the poultry and fresh meats business posted a combined volume and revenue growth of 4% and 5% respectively. This is despite a challenging year for the poultry industry as supply grew faster than market demand. Meanwhile, the fresh meats business performed strongly on account of improvements in hog growing efficiencies and favorable market prices.
The Flour business remained a major contributor to SMPFC’s performance. Revenues grew 4% due to better sales volume.
Sales revenues of the branded value-added businesses grew 8%, driven by the strong sales performance of the Company’s core brands such as Purefoods, Star, Magnolia and San Mig Coffee. New product launches and sustained advertising and promotional activities also contributed to growth. These, coupled with breaks in dairy raw material prices translated to a 10% increase in operating income.
Last year, the Company inaugurated its state-of-the-art grain terminal that can accommodate large Panamax vessels. This will allow the Company to enjoy lower freight costs and terminal fees.
“Moving forward, our focus for the Food Group will be to strengthen existing businesses in core segments like the branded business, and drive even higher levels of value-added innovation across each of our product categories. We are happy with the way that SMPFC has been able to generate savings and invest this in key strategic areas of focus that can grow operating profit and margins, specifically in the areas of distribution, and logistics represented by the new grains terminal,” said Vice Chairman for SMPFC, Ramon S. Ang