SMPFC 2016 Revenues Reach P111 6B Net Income Climbs to P6B

March 16, 2017

San Miguel Pure Foods Company Inc. (SMPFC) reported strong full-year results for 2016 on higher sales, volume, and earnings growth across the food group, particularly its Agro-industrial and Branded Value-Added businesses.

SMPFC posted net income of P6.0 billion, 26% higher than the previous year while operating income rose 17% to P8.9 billion. Consolidated revenues ended 4% higher to P111.6 billion, buttressed by the value-added and stable-priced segments and favorable selling prices of chicken.

"We're very encouraged by the company's strong performance in 2016 and we are determined to build on this momentum by investing in our brands and innovation to drive long-term profitable growth and enhance shareholder value," said SMC President & SMPFC Vice Chairman Ramon S. Ang.

Revenues from the Agro-Industrial business—consisting of Feeds, Poultry and Monterey Fresh Meats—grew 5%. The sales increase was buoyed by stable poultry selling prices and robust volumes benefiting from expanded distribution, increased trade penetration and effective marketing efforts.

The Branded Value-Added business grew 7%. The increase in sales of processed meats, cheese, spreads, biscuits and ice cream were attributed to effective brand building campaigns and strong product development.

Despite a 10% growth in volume, milling revenues declined by 4% due to a drop in global flour prices and increased competition.

Meanwhile, SMPFC's foodservice business reported stronger sales across its primary channels, aided by the growing number of convenience stores and consumer preference for convenience products.

"For 2017, we're working to further improve core operating margins by growing our Value-Added business, improving cost efficiencies, increasing distribution reach and aggressively expanding production capacities", Ang added.