San Miguel Pure Foods Co. Inc., the food group of conglomerate San Miguel Corp., said its income rose slightly in January to September on the back of higher revenues from its feeds and branded value-added businesses.
The company said its income in January to September grew 7 percent to P2.9 billion, from last year’s P2.72 billion. Revenues, meanwhile, rose 3 percent to P76.6 billion.
The company added that its agro-industrial businesses—consisting of feeds, poultry and meats—registered combined revenues of P52.7 billion, 3 percent higher than 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,” the company said.
Prices of chicken and pork rebounded during the third quarter, coming from their year-low mark in the second quarter.
Meanwhile, revenues from Pure Foods’s milling business grew 4
percent to P7.6 billion, despite price rollbacks due to the decline in global prices of wheat.
“Higher volumes cushioned the impact of lower-selling prices. In particular, revenues were buoyed by growing sales of higher-priced customized premixes,”
The company’s branded value-added businesses—comprised of processed meats, dairy, spreads, biscuits and coffee—generated combined revenues of P17.4
billion, 8 percent higher than last year’s record. Pure Foods attributed this to better prices and higher sales.
Its food service business, meanwhile, reported a 10-percent hike in revenues as it continued to benefit from the growth of 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 agroindustrial businesses,” Pure Foods said.