Pure Foods profit up 80%

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Pure Foods profit up 80%
Posted: 1:48 AM | Apr. 19, 2006

Inquirer

SAN Miguel Pure Foods Co., a unit of beverage and food conglomerate San Miguel Corp., said its consolidated revenue in 2005 exceeded P50 billion, a growth of 11 percent from 2004 level.

The company produces fresh and processed meats, dairy products, vegetable oils, feeds, flour, and poultry.

In a report to the Securities and Exchange Commission, Pure Foods said net income grew 80 percent, led by the growth posted by poultry and feeds businesses as well as the company's flour operations. It gave no absolute amounts.

It said the poultry revenue grew seven percent with favorable supply-demand conditions, and good selling prices.

The feed business posted an 11-percent growth to P13.9 billion driven by a 13- percent growth in sales volumes.

The flour business sustained profitability with a volume growth of two percent last year despite relatively flat industry growth. Revenue rose five percent to P5.3 billion last year.

Purefoods-Hormel Co. Inc. registered double-digit sales volume and revenue growths of 14 percent and 17 percent, respectively, San Miguel Pure Foods said. Operating income fell from the 2004 level because of increased raw material prices and fixed costs, bulk of which were related to plant expansion, it said.

Magnolia Inc. posted P4.2 billion in revenue, up 15 percent from 2004.

Operating profits of Great Food Solutions, a food service unit and operator of the Smokey's franchise, grew more than fourfold from the 2004 level, due to the transfer of commissary operations of Monterey to Great Foods in February.

The number of outlets served increased by 147 to 4,108 in 2005 from 3,961 in 2004. Smokey's in 2005 opened 46 outlets, bringing the total number to 103. With INQ7.net