San Miguel Pure Foods Company Inc., the food manufacturing unit of conglomerate San Miguel Corp., said consolidated net income rose 16 percent in 2017 to P6.9 billion, driven by higher volumes from the poultry, fresh meats and branded value-added businesses.
SMPFC said in a disclosure to the stock exchange consolidated operating income grew 11 percent to P9.9 billion, boosted by improved operational efficiencies.
Consolidated revenues also increased 5 percent to P117 billion as combined revenues from the feeds, poultry and fresh meats, rose 6 percent on better sales mix and favorable prices of chicken and fresh meats.
Meanwhile, the group’s milling business remained affected by the deceleration of global wheat prices as revenues for the year declined 3 percent. The business, however, remains profitable despite the margin squeeze.
SMPFC’s branded value-added business registered a 6-percent increase in sales in 2017, driven primarily by 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. We’re very much encouraged by the positive response that our new products have received from consumers,” said San Miguel president and chief operating officer Ramon Ang.
“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,” Ang added.
San Miguel earlier announced plans to consolidate its beer and liquor business under SMPFC through share swap.
The move to consolidate all food and beverage businesses under SMPFC would make the company more attractive to investors.
SMPFC also plans to conduct a share sale by the second quarter of the year to meet the 15-percent minimum requirement for listed companies, with the consolidation increasing San Miguel’s stake in SMPFC to 95.5 percent.
The planned share sale is expected to reach $1.5 billion, which could be the largest ever equity deal in the Philippines.
Share price of SMPFC on Wednesday rose 0.4 percent to P625.50.