Wednesday, March 29, 2023

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San Miguel Foods Net Income Up by 21% in 2022

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San Miguel Foods (SMF), the food division of  San Miguel Food and Beverage, Inc., finished strong in 2022, registering net income of P9.2 billion, up by 21% from the previous year.  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. 

Consolidated revenues surged 16% to P175.3 billion from P151 billion in the same period last year as volumes in most business segments grew, boosted by intensified distribution, aggressive promotional activities, launch of new products and utilization of additional capacity from new facilities.  Price increases were also implemented to partly recover rising costs. 

Volume of the Animal Nutrition and Health segment 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 is comprised of the Poultry and Meats businesses, grew on account of better chicken prices brought about by industry-wide capacity shortages.  Strong recovery of food service and positive market acceptance for the marinated Timplados line helped drive volume.    Meanwhile, the Company continues to downsize its hog operations due to the African Swine Fever.

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.

Meanwhile, revenue of the Flour segment was mainly driven by higher prices, as the business had to cover for higher wheat cost.

“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 COO of San Miguel Corporation. “Despite that, it remained resilient and even managed to grow operating income by 15% to ₱13.3 billion as it optimized utilization of company-owned facilities and undertook cost management measures”. 

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

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

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