Manila—(PHStocks)—San Miguel Pure Foods Co. Inc. (PSE: PF) reported consolidated revenues of PhP50.5 billion for the first semester of 2015, up 3% from same period last year, driven mainly by growth in its Feeds, Processed Meats and Dairy and Spreads businesses. This growth was achieved despite lower selling prices for Poultry due to industry oversupply.
Operating income grew 2% to PhP2.7 billion, as the Feeds and Branded Value-Added businesses generated higher sales volumes, improving overall margins for the Food Group. Net income grew 5% to PhP1.8 billion while EBITDA was also higher at PhP4.1 billion.
The Agro-Industrial and Flour businesses registered a 2% growth in revenues, driven by higher volumes, even as the Poultry and Fresh Meats segments declined, due to a glut and lower demand caused by the extreme summer weather.
The Branded Value-Added businesses likewise grew 11% from the same period last year, driven by the strong performance of brands such as Purefoods, Tender Juicy, Star, as well as new offerings Purefoods Sexy Chix, Purefoods Ready-to-Eat Fried Chicken, Purefoods Chicken Nuggets and Magnolia Ice Cream Best of the Philippines line.
Coupled with lower cost of raw materials, the segment posted a 20% jump in operating income.
Foodservice also reported strong sales across its channels, namely convenience stores, restaurants, and bakeshops.
The company anticipates improvement in the Poultry and Meats segments in the second half, as oversupply and climate conditions are expected to ease.