Pure Foods earnings rise on increased sales

MANILA, Philippines - San Miguel Corp.’s food unit on Tuesday said net income for the first half of the year rose by more than a quarter on the back of sustained sales during the period. Earnings in the first half surged 26 per cent to P541 million as sales improved 12 percent to P36.4 billion, San Miguel Pure Foods Co. Inc. (SMPFC) said. For the next five years, the company intends to spend P5.3 billion, company officials said. Of the said amount, P1.5 billion will be allotted this year. San Miguel Pure Foods Co. Inc. is planning to increase its topline to P80 billion from total revenues of P71.1 billion last year, Ramon S. Ang, SMPFC vice chairman, told reporters. “Our ability to maintain our market leadership in many different food categories relies in anticipating changing trends and understanding the consumer behavior from various income ranges. We constantly review our product portfolio and find ways to offer quality and affordable products that are relevant to their needs," said SMPFC chairman Eduardo M. Cojuangco Jr. Several innovations include products like Ulam King – an inexpensive, viand that is a complete meal in itself, and Mom's Kitchen, prepared meals for middle-income consumers. The company will also boost its sales only through “organic growth" without any acquisition. The company's profit was also boosted by SMPFC's feeds and poultry business owing to better selling prices and cost reduction initiatives, while operating profits of dairy unit Magnolia also posted a turnaround in the first six months of 2009. Meanwhile, the food group’s basic meats segment was weighed down by higher input costs. A sharp-drop in prices affected the flour business' performance while the group's value-added meats business suffered from weak demand for its mid and low-priced products. - GMANews.TV