San Miguel Pure Foods Company Inc., the food manufacturing arm of conglomerate San Miguel Corp., said Wednesday net profit climbed 26 percent in the first half to P3.1 billion from a year ago, on higher-than-expected second-quarter performance.
SMPFC said in a disclosure to the stock exchange first-half consolidated revenues increased 5 percent to P56 billion, driven by higher volumes and favorable selling prices of branded value-added and agro-industrial businesses.
The company said that with lower costs on some major raw materials, a better sales mix and improved operational efficiencies, operating income grew 24 percent to P4.5 billion.
SMPFC’s agro-industrial business, composed of feeds, poultry and Monterey fresh meats, registered combined revenues of P39.5 billion in January to June, up 6 percent over the same period last year.
Higher volumes and favorable selling prices for the poultry and fresh meat segments continued to boost the business’ performance, it said. The feeds segment remained stable.
The milling business contributed P4.6 billion in revenues, down 2 percent from last year, as soft global wheat prices and intense industry competition continued to weigh down on the segment.
Revenues of the branded value-added business reached P12.6 billion, a 4-percent increase from last year, as a result of better sales mix, increased volumes from the processed meat segments in all sales channels and continued market expansion.
“With our expansion projects in full swing, we expect to be able to produce more product offerings to meet the increasing demand and varying needs of our consumers,” San Miguel president and chief operating officer Ramon Ang said.
The company earlier announced plans to spend P56 billion in capital expenditures over the next three years to expand the production capacities of its poultry, processed meats and flour milling businesses.