SMPFC's Net Income Up 20% to P1.5B

May 09, 2017

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

Consolidated revenues reached Php26.7 billion, posting a 3% growth for the first three months, as the Poultry, Fresh Meats and Value-Added Meats businesses benefitted from favourable selling prices. Operating income grew 16% 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 S. Ang.

The Agro-Industrial business, composed of Feeds, Poultry and Monterey Fresh Meats, registered combined revenues of Php18.7 billion, up 2% over the same period last year. Meanwhile, revenues from the Poultry and Fresh Meats segments were higher by 4%.

Revenues from the Flour Milling business grew 4% 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% growth in the Branded Value-Added business to Php5.9 billion.

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