Pure Foods earns 26% higher at P1.1B in first quarter

MANILA, Philippines - San Miguel Pure Foods Co. Inc. (SMPFC), the largest Filipino-owned food company, reported yesterday a first quarter income of P1.1 billion or 26 percent higher than the P871.7 million recorded in the same period last year.

Speaking at the SMPFC annual stockholders’ meeting yesterday, company chairman Eduardo Cojuangco Jr. said growth was driven by effective cost management and improved operational efficiencies.

“Majority of our businesses performed very well this year and in 2010 as we continue to reap the benefits of our major initiatives in the last few years. Moving forward, we will continue to execute the right growth strategies and organization-wide programs to sustain our growth,” he said.

The company’s first quarter revenues reached P20.6 billion, 13 percent higher from the P18.2 billion recorded in the previous year while operating income rose 15 percent to P1.6 billion.

Last year, SMPFC posted revenues of P79.3 billion, or an improvement of six percent, the company said.

It also said that the food firm’s income from operations reached P5.9 billion, up 27 percent from the previous year.

As a result, last year’s net income grew 53 percent to P4.1 billion.

Cojuangco attributed the company’s 2010 performance to the growth of its brands such as Magnolia Chicken, Monterey Fresh Meats, Purefoods-Hormel, San Miguel Mills and San Mig Coffee.

Various factors contributed to the company’s strong 2010 performance, he added.

These include the use of alternative raw materials, optimized operational efficiencies in its poultry and fresh meats business, increased distribution reach, favorable selling prices, strong export volumes, the launch of new products, aggressive capacity expansion programs and cost containment measures.

Its export business, meanwhile, also reported a 10 percent increase in revenues in 2010 over the previous year.

Cojuangco said SMPFC has built one of the most extensive distribution networks of any food company in the country.