San Miguel Foods net income hits P9.2 B

San Miguel Foods Inc.(SMF), the food division of San Miguel Food and Beverage, Inc., finished 2022 with a 21 percent growth in net income to P9.2 billion.
In a statement, the firm said “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 rose 16 percent to P175.3 billion from P151 billion in 2021 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 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 parent company San Miguel Corporation’s President and CEO Ramon S. Ang.
He added that, “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”.
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.