San Miguel Food closing operations in Indonesia

MANILA, Philippines — San Miguel Food and Beverage Inc. (SMFB) is shutting down its operations in Indonesia to focus on its Philippine business.

In a disclosure yesterday, SMFB said it is rationalizing its processed meats business in Indonesia operating under PT San Miguel Foods Indonesia and operations will cease at the end of October.

The company would focus on expansion in the Philippines, SMFB said in its disclosure.

PT SMFI is a 75-25 percent joint venture between SMFB and PT Hero Intiputra.

In the Philippines, SMFB’s brands are San Miguel Pale Pilsen, San Mig Light and Red Horse for beer; Ginebra San Miguel for gin; Magnolia for chicken, ice cream and dairy products; Monterey for fresh and marinated meats; Purefoods and Purefoods Tender Juicy for refrigerated, prepared, processed, and canned meats; Star and Dari Crème for margarine; and B-Meg for animal feeds.

Aside from Indonesia, SMFB also has operations in Thailand, Vietnam and North China.

SMFB reported a consolidated net income of P17.36 billion in the first half, up 137 percent from a year ago, surpassing pre-pandemic profits in the first half of 2019.

Consolidated revenues grew 20 percent to P146.79 billion while EBITDA jumped 66 percent to P29.28 billion.

SMFB president and CEO Ramon Ang attributed the company’s first half performance to “the agility and adaptability of the food and beverage businesses, in the face of unprecedented challenges brought about by COVID-19.”

“As the situation continues to evolve, the flexibility and resilience we developed this past year will enable us to move forward and pivot quickly as needed,” Ang said.

By business segment, the food group raked in consolidated revenues of P72.24 billion during the period, up 11 percent.

Consolidated EBITDA doubled to P11.4 billion while operating income rose more than three-fold to P8.36 billion on higher gross profit and lower selling, general and administrative expenses.

The beer business likewise recovered with consolidated sales volumes improving 15 percent versus last year, with the easing of quarantine restrictions and lifting of liquor bans in its markets.

The spirits business continued its strong performance in the first semester as volumes increased by 21 percent year-on-year. It continued to introduce relevant marketing campaigns and promotions, expand distribution, and sustain supply chain efficiencies.

As a result, the spirits business generated revenues of P20.23 billion, 36 percent higher than the previous year. Income from operations rose 45 percent to P2.61 billion. EBITDA increased 35 percent to P3.1 billion, while its net income jumped 66 percent to P 2.09 billion.