Pure Foods income jumps 22% to P888 M

Pure Foods Corp. registered another banner year in 2000, with net income reaching P888.4 million or 22 percent higher than the previous year’s net income of P727.8 million.

In a disclosure of its unaudited operating results, the company reported consolidated net sales of P12.6 billion, up 19 percent from the previous year due to higher sales of its processed meats, poultry, and feeds businesses.

The processed meats business under The Purefoods Hormel Company – the company’s joint venture with Hormel Foods International–reported excellent results in terms of sales and profits. In the face of the general economic slowdown, increasing raw material costs, and aggressive competition, the processed meats division rose to the challenge and posted double-digit growth in sales and operating income.

The company banked on the strong brand equity of the Purefoods name to chalk up impressive market share gains in refrigerated meats, led by hotdogs. Purefoods Hormel now owns more than half of the national hotdog market based on recent market-share readings. Sales of canned meats also grew as the company maintained its overall leadership in this category.

The Poultry, Livestock, and Feeds Division registered strong growth in sales and now accounts for the biggest contribution to Pure Foods’ net income. The poultry business unit ended the year with strong operating profits after recovering from the glut in supply in the first half of the year.

Tonnage sales of commercial feeds also rose significantly from last year’s level as a result of aggressive marketing activities, expansion of its distribution network and increasing brand awareness among users.

In October 2000, the company’s Laguna and Tarlac feedmills received the ISO 9002 certification, signaling the company’s commitment to deliver high quality feeds.

The company’s flour business sustained its market leadership despite a soft market and strong competition that resulted in depressed selling prices in the early part of the year.

Pure Foods took the lead in promoting Vitamin A and iron fortification in support of the Department of Health’s nutrition program.