Appetite for chicken, fresh meat boosts San Miguel Pure Foods' income
MANILA, Philippines – San Miguel Pure Foods Company Incorporated (SMPFC) saw its net income surge by 16% to P6.9 billion in 2017, after it delivered a higher volume of poultry, fresh meats, and other value-added brands across the country.
The listed company's consolidated operating income, meanwhile, grew by 11% to P9.9 billion in 2017, boosted by improved operational efficiencies.
"We're very much encouraged by the positive response that our new products have received from consumers," San Miguel president Ramon Ang said in a disclosure to the Philippine Stock Exchange (PSE) on Wednesday, March 14.
The disclosure from SMPFC showed that its consolidated revenues grew 5% to P117 billion in 2017.
"Combined revenues from the feeds, poultry, and fresh meats grew 6%, attributed to better sales mix and favorable prices of chicken and fresh meats," said Ang. (READ: Meet Ramon Ang, Filipino billionaire and Duterte's friend)
Decline in milling revenues
SMPFC's milling business, however, remained affected by the continued deceleration of global wheat prices.
Revenues from the milling business declined by 3% in 2017, but the business remained profitable despite the margin squeeze, said SMPFC.
Meanwhile, SMPFC's branded value-added business continued to grow, with its revenues increasing by 6% in 2017.
Ang attributed the growth primarily to the strong performance of processed meats, the launch of new products, and intensified brand-building activities.
"Moving forward, as we strive to further strengthen our market leadership, we will continue to grow our product offerings," Ang said. (READ: Foreign firms eyeing piece of San Miguel's food, beverage unit)
"Apart from that, we will continue to execute on our capacity expansion program in order for us to meet our long-term growth targets and continuously provide for the growing and evolving needs of our customers," he added.
SMPFC's parent unit San Miguel Corporation (SMC), the country's most diversified conglomerate, is set to consolidate all of its food and beverage businesses under one unit through a P336.35-billion share swap deal.
When the deal is done, SMPFC will be called San Miguel Food and Beverage Incorporated. – Rappler.com