SAN Miguel Pure Foods Co. Inc. (Pure Foods) saw its net income grow 16 percent in 2017 to P6.9 billion from the P6 billion in 2016, backed by higher volumes from poultry, meat, and branded value-added businesses.
Consolidated operating income grew 11 percent to P9.9 billion bolstered by improved operational efficiencies, while consolidated revenues rose 5 percent to P117 billion.
Combined revenues from the feeds, poultry and fresh meats segment rose 6 percent on account of a better sales mix and favorable prices.
Revenues from its branded value-added business picked up by 6 percent on the strong performance of its processed meats division, new product offerings, and intensified brand building activities.
However, Pure Foods’ milling business remained affected by the continued deceleration of global wheat prices, causing a 3 percent drop in the segment’s revenues.
“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,” San Miguel Corp. (SMC) President Ramon Ang said. SMC is the parent firm of Pure Foods.
“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.
SMC is set to consolidate its beer and liquor businesses into Pure Foods this year, which would allow the latter to conduct a $1.5 billion follow-on offering.
Following the consolidation, a share sale would boost Pure Foods’ public float. The company is estimated to be worth up to $10 billion following the transaction.