SMPFC YTD September Revenues Grow To P76.6B

November 06, 2015

Holiday spending to further boost full-year performance

San Miguel Pure Foods Co. Inc. reported consolidated revenues of P 76.6 billion for the first nine months of 2015, 3% higher than the same period in 2014. Operating income grew 4% to P4.5 billion. The company's performance from January to September was mainly driven by strong revenues in the feeds and branded value-added businesses, offsetting weaker sales in the poultry, meats and flour segments. Net income increased 7% to P2.9 billion, while EBITDA was at P6.5 billion.

Its agro-industrial businesses, consisting of feeds, poultry and Monterey meats, registered combined revenues of P 52.7 billion, 3% higher than the same period last year. Growth came largely from the feeds business as revenues of the poultry and meats business were adversely affected by lower selling prices of chicken and pork due to industry oversupply in the first half of the year. Prices of chicken and pork rebounded in the third quarter, coming from their year-low mark in the second quarter.

Meanwhile, its milling business posted 4% growth in revenues of P7.6 billion despite price rollbacks following the decline in global wheat costs. Higher volumes cushioned the impact of lower-selling prices. In particular, revenues were buoyed by growing sales of higher-priced customized premixes.

SMPFC's branded value-added businesses, comprised of processed meats, dairy, spreads, biscuits and coffee, generated combined revenues of P 17.4 billion, 8% higher compared to the same period in 2014. This jump in revenue is attributed to better-selling prices and increased sales of processed meats, dairy, spreads and biscuits.

Its foodservice business reported a 10% revenue growth as it continued to benefit from growth in the local food service industry.

The Company expects to sustain its growth momentum over the remainder of 2015, buoyed by holiday spending and a strong recovery in the agro-industrial businesses.