San Miguel Food and Beverage Inc. said Wednesday it will spend P30 billion in 2021 mainly to expand its feed mill business.
SMFB president and chief executive Ramon Ang said during the annual stockholders’ meeting the company would build seven new feed mills worth $50 million each.
The company is also expanding its feed mill capacity in facilities in Isabela, Davao, Cebu and Bulacan.
The food and beverage company is undertaking aggressive expansion as it started seeing signs of recovery.
“We are seeing encouraging signs amid the mass vaccination program of the government and continued easing of restrictions,” Ang said.
He said the company was also planning to replicate its “very successful” integrated industrial complex in Sariaya, Quezon.
Ang said the company was initially planning to develop a feed mill and dressing plant in a property in Quezon but it added other features in the complex, including housing and livelihood and community projects to address the needs of the residents near the area.
“This model is very successful, and we are trying to do this all over the country in all the regions where we plan to build integrated food manufacturing complex,” Ang said.
SMFB returned to profit in the first quarter, posting consolidated net income of P9.68 billion, up 66 percent from the same period last year.
Consolidated sales reached P76.36 billion, up 11 percent from the same period in 2020.
SMFB said it quickly implemented programs to adapt to changing market conditions and capture new opportunities after a challenging 2020.
The group’s beer business under San Miguel Brewery Inc. also posted consolidated revenues of P28.84 billion in the first quarter, up two percent year-on-year.
Volumes remained depressed with the continued closure of most on-trade channels and the lingering impact of the enhanced community quarantine in Metro Manila and nearby provinces.
Ginebra San Miguel Inc. delivered another stellar quarter as net income jumped 120 percent to P1.04 billion as consolidated revenues surged 52 percent to P11.34 billion.
Meanwhile, the net income of San Miguel Food more than doubled to P3.39 billion as consolidated revenues rose 9 percent to P36.18 billion on the back of strong demand and more stable pricing across all business segments.