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San Miguel Food Group Posts Higher Profits

by 5m Editor
22 July 2009, at 8:57am

PHILIPPINES - San Miguel Purefoods Co. Inc. (SMPFC) has posted a 26-per-cent increase in first half profits this year and expects sales to reach 80 billion pesos (PHP) for the year.

Philippine Daily Inquirer reports that SMPFC, the food unit of conglomerate San Miguel Corp. (SMC), posted a 26-per-cent increase in first half profit to PHP 541 million over a year ago on the back of higher prices of feeds and poultry and cost reduction programmes.

SMPFC officials reported during the recent stockholders' meeting that sales went up by 12 per cent in the first six months versus a year ago to PHP 36.4 billion, as higher selling prices partially covered the increase in raw material costs.

SMPFC vice chair and SMC president, Ramon Ang, said: "We are already implementing actions that should generate stronger profits for our food business, particularly in the second half.

"We're going to continue to manage higher input costs through pricing actions and operating excellence and we have made progress in several important areas of our company, particularly product innovation, more effective marketing and distribution and manufacturing efficiencies."

SMPFC expects to end the year with PHP 80 billion in revenue, up 12 per cent from last year.

Aside from the higher selling price of the feeds and poultry businesses and cost reduction programmes, profits were also boosted by the turnaround in the operations of dairy unit Magnolia in the first six months, according to Philippine Daily Inquirer.