San Miguel Food Group stages strong recovery

The San Miguel Food Group’s domestic operations staged a strong recovery in the second quarter, mainly due to higher sales from its poultry, meats and flour businesses.

The Domestic Food Group which includes San Miguel Pure Foods Co. Inc. (and its subsidiaries San Miguel Foods Inc., Magnolia Inc. and The Purefoods-Hormel Co.), Monterey Foods, and SMC’s Agribusiness division, registered P16 billion in sales for the period April to June this year or 18 percent higher than in the same period a year ago. Consolidated operating income likewise grew 27 percent to P800 million.

The improved performance of the group’s poultry operations was attributed to enhanced operational efficiencies and the installation of latest technologies in chicken farming such as controlled climate or tunnel-ventilated system. This technology increases feed-conversion ratio and average live weight, and lowers mortality rates in the farms.

The domestic food group expects its flour business to further strengthen with the launch of its milling and flour blending facility in Batangas last May. The plant produces up to 2,000 tons per day, making it the largest flour maker in the country.

Its coffee, pet food, and ice cream businesses contributed $200 million in sales, giving the group bigger growth opportunities in the future.

Management expressed confidence it can sustain its gains for the rest of the year given the strong performance of its poultry and flour businesses.

San Miguel is building a state-of-the art meat processing plant in a 10-hectare property in Gen. Trias, Cavite as part of its three-year expansion program in the domestic market estimated to cost around P15 billion.

The facility, touted as the most modern meat plant facility in the Philippines and in Asia, is intended to meet increasing demand for processed meats in the Philippines and in other markets in Asia.

The plant has the capacity to produce 160 metric tons of hotdogs per day and 45 metric tons per day each for hams, bacons, cold cuts and pizza toppings. Capacity can further be expanded to 320 metric tons per day for hotdogs and 60 metric tons for the other processed meats, making it the biggest hotdog plant in Asia.