MANILA, Philippines - Net earnings of San Miguel Pure Foods Co. Inc., the food unit of the San Miguel Group, rose four percent last year eas revenues reached a record P89.6 billion.
Pure Foods posted a net income of P4.2 billion compared with P4.1 billion in 2011 as increased costs, particularly in its agro-industrial cluster, clipped earnings growth.
The company reported a 13 percent rise in revenues due to the strong showing of most of its units on the back of higher volumes, favorable selling prices, aggressive distribution expansion, introduction of new products, and higher export sales.
Operating income improved four percent to P6.1 billion, with significant contributions from its value-added meats, dairy, flour and coffee businesses.
The group’s value-added business registered a five percent rise in revenues while its feeds business posted an eight percent increase in revenues.
Also contributing to the growth were Magnolia Dairy, Magnolia Ice Cream and San Mig Coffee, which benefitted from wider distribution, brand-building initiatives and better selling prices.