March 9, 2012
San Miguel Pure Foods posts lower profit increase in 2011
Philippine food conglomerate San Miguel Pure Foods Corporation, reported lower single-digit profit growth for 2011 as higher sales volume and selling prices were dragged down by an input cost surge.
The listed company behind the Tender Juicy, Magnolia Chicken and B-Meg brands hiked its net income last year by 3.82% to PHP4.21 billion (US$98.94 million) from PHP4.06 billion (US$94.14 million) from the previous year.
This, even as San Miguel Pure Foods' 2011 revenues managed to soar to an all-time high of PHP89.6 billion (US$2.10 billion), up 13% from PHP79.3 billion (US$1.86 billion) in 2010.
The sales surge was reportedly anchored on increased demand, aggressive distribution expansion, new product launches and higher export sales.
Operating income also grew by 4% to PHP6.1 billion (US$143.36 million) from PHP5.90 billion (US$138.66 million) in 2010 on the back of income contributions from the firm's processed meats, dairy, flour and coffee businesses.
Wider distribution, brand-building initiatives and higher selling prices pulled up revenues for the company's Magnolia Dairy, Magnolia Ice Cream and San Mig Coffee brands.
In terms of revenues, the firm's value-added business grew by 5%, while the commercial feeds segment posted an 8% hike.
San Miguel Pure Foods was incorporated in 1956 to originally engage in the business of manufacturing and marketing processed meat products.
San Miguel Pure Foods shares were last traded on Feb. 15, 2012 at PHP1,010.00 (US$23.73) apiece.
