San Miguel Food and Beverage Inc., the food and beverage subsidiary of San Miguel Corp., is closing down its meat processing business in Indonesia as part of rationalization.
SMFB said in a disclosure to the stock exchange PT San Miguel Foods Indonesia, a 75-25 joint venture between the company and PT Hero Intiputra, would cease operations on Oct. 31, 2021.
The company said the decision would enable it to streamline its businesses and focus on expansion in the Philippines. No other details were disclosed, including impact on overall business.
PTSMFI produces and markets Halal processed meats which are sold under the Farmhouse and Vida brands.
SMFB earlier said it would spend P30 billion in capital expenditures this year to build seven feed mills across the country.
The company is also expanding its feed mill capacity in Isabela, Davao, Cebu and Bulacan.
SMFB is engaged in manufacturing and marketing of processed meat products. In 2018, San Miguel consolidated its food manufacturing and beer business under SMFB.
The company is now operating in three business segments: beer and non-alcoholic beverages, spirits and food.
SMFB said first-half consolidated net income climbed by 137 percent in the first half to P17.36 billion from a year ago and surpassed pre-pandemic profit in the first half of 2019. Consolidated revenues grew 20 percent to P146.79 billion in the six-month period, while operating income more than doubled to P 23.04 billion, driven by improvements in volumes and selling prices across the divisions and continued group-wide cost-containment efforts and operational efficiencies.
The share price of SMFB was nearly unchanged at P75.95 on Friday.