Pilmico earnings up 5% in 2012

MANILA, Philippines - The flour and feed milling unit of Aboitiz Equity Ventures registered a modest growth in net income year-on-year in 2012 as it is challenged by lower-priced foreign flour and higher input costs for its feeds business.

In its annual report the Aboitiz group said Pilmico Food Corp. ended 2012 with a net income of P1.299 billion in 2012 by five percent from P1.233 billion in 2011.

Its revenues rose by six percent in 2012 to P15.7 billion from P14.753 billion in 2011.

Its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBIDTA) rose by seven percent to P2.1 billion in 2012 from P1.8 billion in 2011.

The company said its food group’s strong performance was driven by the six percent growth in in overall sales in 2012 as the flour, feeds, and farm divisions all posted increases in sales volume.

The group said Pilmico sales in the fourth quarter of 2012 were particularly strong at P4.2 billion, up by 11 percent year-on-year, outpacing growth in previous quarters in 2012.

The strong performance during the fourth quarter of 2012 was attributed to the improvements made in the group’s port facilities and the expansion of its loading and unloading capacities.

The Aboitiz group said that despite increased competition with cheaper imported flour, Pilmico’s overall sales of volume of flour posted a modest growth after it introduced its Silver Star brand.