San Miguel Pure Foods' profit up 2% in 2012

The net earnings of San Miguel Pure Foods Company Inc. (SMPFC) rose two percent to P4.2 billion in 2012, the company said in a disclosure to the Philippine Stock Exchange. SMPFC, the food manufacturing arm of San Miguel Corp., said it posted higher profits “on the back of robust sales, improved efficiencies, and the continued expansion of its distribution network,” which were able to offset difficulties such as the volatility in the prices of raw materials. The company's consolidated revenues grew 7 percent to P95.8 billion due to improvements and the continued expansion of SMPFC's distribution network. SMPFC president Francisco Alejo III also attributed the firm’s good results to the introduction of new products and successful marketing initiatives. The company also reported the “solid performance” of its value-added business, which includes brands Tender Juicy, Purefoods, Star, Magnolia and San Mig Coffee, as well as that of its agro-industrial cluster and its flour business. The disclosure also noted that SMPFC began construction on a P3-billion grain terminal in Mabini, Batangas, which will be able to accommodate large vessels. It is scheduled to begin operations in the second half of the year and is expected to reduce the freight and handling costs of raw materials. — BM, GMA News