San Miguel Foods Inc., the food unit of San Miguel Food and Beverage Inc., posted net income of P9.2 billion last year, up 21 percent from the previous year’s P7.61 billion.
The strong earnings performance was traced to record-breaking sales performance, the third in a series since the pandemic, as most business segments delivered double-digit revenue growth.
Its food units include Purefoods-Hormel Co. Inc., Magnolia Inc., San Miguel Super Coffeemix Inc. and San Miguel Mills Inc.
Consolidated revenues rose 16 percent to P175.3 billion from P151 billion in the same period last year as volumes in most business segments grew, boosted by intensified distribution, aggressive promotional activities, launch of new products and utilization of additional capacity from new facilities.
Price increases were also implemented to partly recover rising costs.
“Throughout the year, our food division faced unprecedented cost pressures from higher commodity prices, rising inflation and a weaker peso,” Ramon S. Ang, president and COO of San Miguel Corp., said.
“Despite that, it remained resilient and even managed to grow operating income by 15 percent to P13.3 billion (from P11.5 billion prior) as it optimized utilization of company-owned facilities and undertook cost management measures,” he said.
The volume of its animal nutrition and health segment grew on the back of higher broiler, layer, and hog feeds sales as well as growing demand for its pet and animal health care veterinary medicine products.
The protein segment, comprised of the poultry and meats businesses, grew on account of better chicken prices brought about by industry-wide capacity shortages.
Strong recovery of food service and positive market acceptance for the marinated line helped drive volume.
The company continues to downsize its hog operations due to African swine fever.
On the prepared or packaged food segment, it delivered strong revenue growth led by flagship products Purefoods Tender Juicy Hotdogs, Purefoods Chicken Nuggets, whole hams and Magnolia butter and cheese, with significant contribution from newly launched products under the Purefoods native line and Magnolia salad aids.
Significant volume growth along with market share gains was seen across multiple categories, the company said.
Revenue from the flour segment was driven by higher prices, as the business had to cover for higher wheat cost.
