Pasig–(PHStocks)–San Miguel Pure Foods Co. Inc. (PSE: PF) registered all-time high revenues of PhP89.6 billion for 2011, up 13% from PhP79.3 billion in 2010 and driven by increased demand, aggressive distribution expansion, introduction of new products, and higher export sales.
Despite a significant increase in input costs, particularly in its agro-industrial cluster, income from operations increased 4% to PhP6.1 billion, with significant contributions from its value-added meats, dairy, flour, and coffee businesses.
Profits were boosted mainly by higher volumes, improved efficiencies, a good wheat position, a strong peso, and effective cost reduction across the entire group.
Net income rose to PhP4.2 billion, up 4% from PhP4.1 billion in 2010.
Nearly all of SMPFC’s businesses posted significant revenue growth due to higher volumes and favorable selling prices.
Its Value-added business chalked 5% growth in revenue, while its Feeds business posted an 8% revenue growth in commercial feeds.
Revenue growths were also seen across Magnolia Dairy, Magnolia Ice Cream and San Mig Coffee, which benefitted from wider distribution, brand-building initiatives and better selling prices.