San Miguel Pure Foods reported a 7.3 percent drop in its 2014 net income, despite higher revenues.

The company’s net income was PHP3.8 billion (US$849,037), lower than the PHP4.08 reported in 2013. However, revenues rose 3 percent to PHP103 billion, from PHP99.8 billion the previous year.

Operating income rose 17 percent to PHP6.5 billion “due to higher revenues, better efficiencies, and lower wheat costs.”

“Higher volumes and better selling prices across most of its businesses contributed to strong results,” a statement from the company said.

Combined revenues of the agro-industrial and flour milling businesses grew 6 percent, also due to higher volumes and favorable selling prices.

Revenues for the branded, value-added business rose 2% “despite logistical constraints resulting from congestion in Manila’s main ports, which significantly affected volumes.”

The company said its growth was helped by expansion of franchise outlets such as Magnolia Chicken Stations, Monterey Meat Shops and Kambal Pendesal and Food Service.

Pure Foods said it is actively looking for opportunities to grow its portfolio though acquisitions.

“We are actually looking at Vietnam and Indonesia where we already have businesses. We’re looking at processed meats because that is our core competency. Its at the very early stage, we’re doing discussions,” said Pure Foods President Francisco Alejo.

Alejo said Pure Foods “continues to look for large-scale acquisitions although we consider location – if it is too far. If we can do it within the ASEAN, that is better, because of the ASEAN integration.”