SAN MIGUEL Pure Foods Company, Inc. (SMPFC) booked a double-digit increase in earnings in 2017, boosted by the strong performance of its poultry, fresh meats, and branded business segments.

In a statement issued after the stock market’s close on Wednesday, SMPFC said its consolidated net income jumped 16% to P6.9 billion in 2017, following a 5% increase in revenues to P117 billion. Consolidated operating income accordingly increased by 11% to P9.9 billion, which the company attributed to improved operational efficiencies.

The food company reported consolidated revenues from the feeds, poultry, and fresh meats segment climbed 6%, due to better sales complemented by favorable prices of chicken and fresh meat products.

The branded value-added segment also saw a 6% increase in revenues for the year, amid the company’s launch of new products which accompanied the performance of processed meats.

In contrast, SMPFC said revenues from the milling business dropped by 3%, pulled down by the general decline in global wheat prices. The company noted, however, that the segment remained profitable for the period.

“Moving forward, as we strive to further strengthen our market leadership, we will continue to grow our product offerings. We’re very much encouraged by the positive response that our new products have received from consumers,” Mr. Ang, who sits as SMPFC’s vice-chairman, was quoted as saying in a statement.

Brands under SMPFC’s portfolio include Magnolia for chicken, ice cream and dairy products, Monterey for fresh and marinated meats, Purefoods for refrigerated processed meats, and canned meats, Star and Dari Creme for margarine, San Mig Coffee for coffee, B-Meg for animal feeds, and La Pacita for biscuit and flour-based snacks.

Mr. Ang added the company will continue to expand its capacities in order to meet its long-term growth prospects.

“Apart from that, we will continue to execute on our capacity expansion program in order for us to meet our long-term growth targets and continuously provide for the growing and evolving needs of our customers,” Mr. Ang said.

SMPFC earlier said it will be spending P56 billion to P60 billion in capital expenditures in the next three years. This will allow the food business to account for 21% of parent San Miguel Corp.’s (SMC) total revenues by 2020, against its revenue contribution of 16% back in 2016.

SMC is currently in the process of merging Ginebra San Miguel, Inc., and San Miguel Brewery, Inc. with SMPFC. The new entity will then be renamed San Miguel Food and Beverage, Inc. (SMFBI).

Upon the consolidation, SMFBI will have a public float of 4.3%, prompting the group to conduct a follow-on offering (FOO) in order to comply with the minimum public ownership rule of 15%.

SMPFC looks to conduct the FOO by the second quarter of this year.

Shares in SMPFC gained P2.50 or 0.40% to close at P625.50 each at the stock exchange on Wednesday. — Arra B. Francia