February 17, 2004

Philippines' San Miguel Post Impressive Turnaround To Exceed Sales Target

Driven by higher sales, Philippines' San Miguel Pure Foods Co. Inc. (SMPFC) posted a 15 percent increase in net income last year, rising from P691 million to P794 million.

In a statement issued yesterday, SMPFC said it exceeded the P36-billion mark in sales revenues, representing a 16 percent growth or almost a P5 billion increase from the 2002 figure.
 
Income from operations of SMPFC's different food units went up by 16 percent to P1.9 billion despite the weaker peso, higher raw material costs, and intense competition.

SMPFC's poultry business made an impressive turnaround, posting positive operating profits of P135 million.

According to SMPFC, "Timely management of supply coupled with improvements in growing efficiencies contributed to this growth."

In the processed meats segment, Purefoods-Hormel sustained its strong performance with its tonnage and peso sales growing by 18 percent as against the previous year. The company launched a total of 17 new products in the market last year.
 

SMPFC is confident that 2004 will be a better year for the company as it expands to Southeast Asia for future growth. "Long-term prospects of the company remain bright especially with the thrust to expand to Southeast Asia and China, move into higher value-added branded segments and transform its commodity business into globally competitive enterprises. SMPFC aims to become an active player in the region in support of its aggressive growth objectives," SMPFC said.

SMPFC is looking at business opportunities in the processed meats, and other branded foods in China, Indonesia, Vietnam, Thailand, Malaysia, Taiwan and Australia.