San Miguel Food and Beverage Inc. plans to spend P30 billion from 2018 to 2020 for the expansion of its food business.
SMFB chief operating officer for food business Francisco Alejo said in an interview following the investors’ briefing on the company’s share sale the group would expand the capacities across its food division, including animal feeds, four milling, poultry and processed meats.
Conglomerate San Miguel Corp. consolidated its beer, spirits and food businesses under SMFB.
Alejo said for the animal feeds business the company would put up five new feed mills, including two that would be operational this year and three that would open in 2019.
“We are expanding the capacity of our feed mill because capacity reached 95 percent and we continue to see opportunity for growth in animal feeds business,” Alejo said.
The group is constructing poultry facilities that are slated for completion in the next two years in anticipation of rising demand for chicken.
SMFB said it would also expand its flour milling capacity which had reached utilization rate of 100 percent. Under the plan, the new facilities will increase the company’s capacity by 72 percent.
Alejo said the company expanded the capacity of its processed meat business by 50 percent with another 50-percent expansion.
SMFB is constructing a production plant in Sta. Rosa, Laguna that will produce ready-to-eat-meals.
The P2-billion facility that will produce fully-cooked viands and heat-and-serve meals to serve growing consumer demand for convenient, nutritious meals differentiated by home-cooked taste, rich quality and the highest level of food safety.
The facility is slated for completion by the second half of 2019.
Meanwhile, the group’s beer business is also spending P11 billion in 2019 to expand its existing 18.8-hectolitre capacity.
SMFB said the company was building three breweries that would be completed by late 2019 to 2020.
SMFB reported a net income of P15.37 billion in the first half, up 20 percent year on year.
First-half consolidated revenues hit P137.4 billion, up 15 percent from the same period last year, while operating income went up 20 percent to P22.9 billion.
