San Miguel Foods grows incomeby 21% last year

MANILA, Philippines — San Miguel Foods Inc. (SMF) grew its net income last year by 21 percent to P9.2 billion on the back of strong sales.

“The strong earnings performance was mainly attributable to its record-breaking sales performance, the third in a row since the pandemic, as most business segments delivered double-digit revenue growth,” SMF said yesterday.

San Miguel Corp. president and CEO Ramon Ang said the food division faced unprecedented cost pressures from higher commodity prices, rising inflation and a weaker peso throughout the year.

“Despite that, it remained resilient and even managed to grow operating income by 15 percent to P13.3 billion as it optimized utilization of company-owned facilities and undertook cost management measures,” Ang said.

Companies under SMF include San Miguel Foods Inc., The Purefoods-Hormel Co. Inc., Magnolia Inc., San Miguel Super Coffeemix Inc., and San Miguel Mills Inc.

SMF recorded consolidated revenues of P175.3 billion, up 16 percent from the same period last year as volumes in most business segments grew.

This as the company intensified distribution and promotion and launched new products and utilization of additional capacity from new facilities.

Price increases were also implemented to partly recover rising costs.

By segment, volume of the animal nutrition and health business grew on the back of higher sales of broiler, layer, and hog feeds, as well as growing demand for its Nutrichunks pet care and San Miguel Animal Health Care veterinary medicine products.

The protein segment, which comprises the poultry and meats businesses, grew, as chicken prices improved.

However, the company continues to downsize its hog operations due to the African Swine Fever.

Similarly, the prepared and packaged food segment delivered strong revenue growth led by its flagship products – Purefoods Tender Juicy Hotdogs, Purefoods Chicken Nuggets, whole hams, and Magnolia butter and cheese, with significant contribution from newly launched products under the Purefoods native line and Magnolia salad aids. Significant volume growth along with market share gains was seen across multiple categories.

Revenue of the flour segment was mainly driven by higher prices, as the business had to cover for higher wheat cost.

In the last seven years, the company has been aggressively expanding its feedmills, poultry farms and food processing facilities to ensure supply and bolster food security in the country.