San Miguel Foods’ income up 21% to 9B as sales jump

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THE food division of listed firm San Miguel Food and Beverage, Inc. reported a 21% rise in net income to P9.2 billion in 2022, citing double-digit revenue growth for most of its business segments.

In a media release, the division — San Miguel Foods — described its sales performance last year as “record-breaking” for a “third [year] in a row” since the pandemic.

“Throughout the year, our food division faced unprecedented cost pressures from higher commodity prices, rising inflation and a weaker peso,” said Ramon S. Ang, president and chief operating officer of San Miguel Corp., the parent firm of the food and beverage company.

Mr. Ang said that the division reported a 15% growth in operating income to P13.3 billion as it “optimized utilization of company-owned facilities and undertook cost management measures.”

The food division houses San Miguel Foods, Inc.; The Purefoods-Hormel Co., Inc.; Magnolia, Inc.; San Miguel Super Coffeemix Co., Inc.; and San Miguel Mills, Inc.

Consolidated revenues for the group rose 16% to P175.3 billion in 2022 from P151 billion in the previous year, due to volume growth after a boost in distribution, promotional activities, new product offerings, and added capacity from new facilities.

“Price increases were also implemented to partly recover rising costs,” it said.

Its animal nutrition and health segment saw growth due to higher sales in broiler, layer, and hog feeds, as well as the demand growth for its products Nutrichunks pet care and San Miguel Animal Health Care veterinary medicines.

San Miguel Foods’ protein segment grew amid higher chicken prices resulting from capacity shortages in the industry. Volume was also driven by the recovery of food service and positive product acceptance. Hog operations were downsized due to the African Swine Fever.

The prepared and packaged food segment ended the year with strong revenue growth from its flagship brands, namely: Purefoods Tender Juicy Hotdogs, Purefoods Chicken Nuggets, whole hams, and Magnolia butter and cheese. New products under Purefoods native line and Magnolia salad aids also contributed.

“Significant volume growth along with market share gains was seen across multiple categories,” San Miguel Foods said.

Additionally, San Miguel Mills’ revenues were driven by higher prices as the company had to accommodate for higher wheat costs.

San Miguel Foods said it had been “aggressively expanding its feed mills, poultry farms, and food processing facilities in the last seven years to ensure supply and bolster food security in the country.” — Adrian H. Halili