San Miguel Pure Foods posts 4% increase in nine-month revenues

San Miguel Pure Foods Company Inc., the food manufacturing arm of San Miguel Corp., is optimistic it will exceed its P100-billion revenue mark by the end of the year, after it reported on Wednesday that its nine-month consolidated revenues grew by 4 percent to P74.4 billion from a year earlier, driven by its agro, milling and dairy businesses.

In a disclosure to the Philippine Stock Exchange, the company said its operating income increased by 18 percent to P4.3 billion "as favorable selling prices, lower wheat costs and improved availability of key raw materials resulted in better margins for the agro, flour milling, and dairy businesses."

This also eased the impact of Manila port congestion and Typhoon Glenda on operations, the company said.

The truck ban in Manila was put in place last February to address traffic woes but was later lifted by the local government on Sept. 13.

The company added that the typhoon that hit parts of Luzon in July affected its broiler supply in the third quarter.

"Sales volumes of Magnolia Chicken would have been much higher had it not been for typhoon Glenda," the company said.

The branded valued-added business, meanwhile, registered a 2-percent combined revenue growth.

The processed meats business was also affected by the port congestion, the company noted.

Though there were price increases in some raw materials, the dairy business continued to deliver a "strong performance," it added.

The company is positive that spending during the holiday season will give an additional boost to its volumes and revenues in the fourth quarter.

It said it expects to breach the P100-billion revenue mark by the end of 2014. — Kathryn Mae P. Tubadeza/BM, GMA News