San Miguel Pure Foods to Introduce More Food Branded Products This Year
This is in line with the food group’s strategic move to shift its portfolio toward branded food products. Branded products, growing from 33% of total revenues in 2001 to 49% in 2006, has improved the company’s gross margins.
14/05/07 San Miguel Pure Foods Company, Inc, the food division of San Miguel Corporation (SMC), said it will introduce more new food branded products this year as emerging businesses particularly its coffee, snack food, pancake mixes, ice cream, milk, cooking oil, and ready-to-eat meat products posted an impressive P1.4 billion revenues in 2006, almost double the 2005 results.
This is in line with the food group’s strategic move to shift its portfolio toward branded food products. Branded products, growing from 33% of total revenues in 2001 to 49% in 2006, has improved the company’s gross margins.
“Leveraging on the success of new products will be key for us going forward and we’re going to do all we can to keep the momentum going, and our new brands and categories fresh,” SMC
Chairman Eduardo M. Cojuangco, Jr. told stockholders during the SMPFCI annual stockholders meeting yesterday.
SMPFCI’s strong first quarter performance hints that the company is on the right track, with consolidated sales revenue posting a 10% growth as most businesses posted volume increases and enjoyed favorable selling prices. The consolidation of Monterey into SMPFC starting January, following the assignment by SMC of its remaining interest in the said company, also helped boost the company’s financial results. This, combined with cost breaks in some major raw materials and improved efficiencies, helped deliver higher margins in the first quarter and a double digit growth in income from operations and net income of 34% and 63%, respectively.
The consolidation of Monterey is in line with SMC’s move to simplify the ownership of its extensive food division.
In 2006, prior to the consolidation, SMPFCI achieved a 5% increase in consolidated revenues to P53 billion largely attributed to significant volume growth of its poultry feeds, and dairy businesses. Income from its operations rose 23% from the previous year at P2.1 billion. After deducting one-time costs related to restructuring and cost-reduction programs, operating profits still surpassed prior year by 10%. Net income after interest and income tax stood at P1.0 billion--almost at par with 2005.
