SAN MIGUEL Pure Foods Co. Inc. over the weekend said net earnings for the first quarter of the year surged by more than a third as a result of better product mix, improved efficiencies, and cheaper raw materials.
In a disclosure to the Philippine Stock Exchange, the food group of conglomerate San Miguel Corp. said net profit for the first three months of the year grew by 34 percent to P1.2 billion versus P895.52 million a year earlier.
Revenue reached P26 billion, up 4 percent in the same comparable period, the company said.
Its branded value-added business registered a 5 percent increase in revenue.
“Better product mix, improved efficiencies, and lower raw material prices in the dairy and spreads businesses contributed to growth,” the company told the exchange.
However, its milling business was weighed down by the downtrend in the selling prices of basic flour which affects wheat prices in the world market.
With basic flour prices to stay weak for the rest of the year, the company will continue to focus on growing sales of customized and specialty premixes for more stable margins.
Due to last year’s financial results, the company’s board approved a cash dividend of P1.50 per share.