Pure Foods reports higher earnings in H1

Pure Foods Corp. (PFC) sustained its high-growth performance during the first six months as it achieved record volumes across all its core businesses of processed meats, poultry and flour.

Consolidated net sales increased by a hefty 32 percent to P7.2 billion, from P5.5 billion during the same period in 2000. Net earnings reached P339 million, up 10 percent from P309.5 million a year ago.

The company’s processed meat business continued to deliver exceedingly good results. Even as the industry contracted by 14 percent, Pure Foods managed to improve its volumes by 19 percent, securing its dominance in the refrigerated meats segment, where it commands a 65 percent share. Record-high sales for hotdog contributed to this strong performance, a good part of which was generated by the fast-growing wet market outlets in Greater Manila.

In the canned meats segments, the company strengthened its position as it regained market leadership over imported brands in the luncheon meat category. This was achieved following aggressive efforts to expand distribution networks and continuously improve product quality. Pure Foods is expected to post even bigger volumes as consumer demand peaks with the onset of the Christmas season.

Boosted by better selling prices, revenues in PFC’s poultry business increased by 27 percent. Sales of value-added chicken grew significantly, fueled by strong consumer acceptance of the company’s new ‘Pure Delight’ chicken hotdog.

In its commercial feeds business, the company registered an unprecedented 59 percent volume growth. Gains were achieved across the company’s commercial feed categories on the back of aggressive marketing activities and enhanced distribution. Flour, likewise, improved its performance by 27 percent on account of improved selling prices, allowing the company to steadily maintain its lead with a 17 percent market share.

The acquisition of Pure Foods by San Miguel Corp. is expected to result in even further growth as synergies are drawn from the combined food businesses. Together, Pure Foods and San Miguel now own a portfolio of leading brands capable of delivering even stronger volume growth, improved margins, and higher earnings per share.

Enrique A. Gomez Jr., president of Pure Foods and San Miguel Food Group, expressed confidence that the company will sustain its first semester momentum through aggressive marketing and operational efficiency programs. "We have ambitious performance targets for the full year, which we are set to achieve by maximizing capacities and resources, introducing more value-added products, and efficiently managing our costs."