MEGA PRIME FOODS, INC. has allocated over P1 billion for capital expenditure (capex) this year to support new projects.
“For capex this year, we are building a lot of new developments, so it will be more than P1 billion, 20-30% higher than last year,” Mega Prime President and Chief Executive Officer Michelle Tiu Lim-Chan said on the sidelines of the company’s 50th Anniversary event on Friday.
“We are investing in the Philippines because we want to generate more jobs and improve the economy of the Philippines,” she added.
She said the company is focusing on developing its information technology and automation systems to improve operational efficiency and maintain the quality of its sardines.
A portion of the capex will also be used to build new boats, refurbish old boats, and for dry docking.
Meanwhile, Mega Prime is targeting double-digit growth in revenues and market share.
“Target growth for revenues is 28%. And we are tracking well so far,” said Mega Prime Chief Growth and Development Officer Marvin P. Tiu Lim.
In a previous statement, he said the company aims to increase Mega Sardines’ market share to at least 30% by year-end, up from 26% in 2023.
Ms. Tiu Lim-Chan said a 28% topline growth would be higher than usual for the company.
“It will be primarily driven by our 50th year promotion and the Jimm’s Coffee acquisition,” she added.
For its promotion, the company is giving away P50 million to consumers who purchase Mega Sardine cans with special codes on the lids.
“They can win instant GCash, or they can also win a raffle every month for either a car or P1 million. So, we are very excited and hopeful that this will help boost sales and also help penetrate a lot of people throughout the nation,” Mr. Tiu Lim said.
On acquisitions, he said the company is in ongoing talks with several firms, particularly in the health and wellness segment.
“What we really want is to transform the business into a health and wellness business because it is a waste if we do not take care of our nutrition,” he said.
Asked about the timeline for the planned acquisition, he said, “The timeline is as soon as possible because we really want to grow. It is going to be hard to just grow organically, so we need to grow through acquisitions.”
He clarified that the funding for the acquisition will not come from this year’s capex.
The company is also targeting to increase exports to 10% of its business.
“Exports are not big. They are only around 5% now. But we really want to grow it to 10%. Because the base is growing, the domestic market is growing, so the export market needs to catch up with that,” Ms. Tiu Lim-Chan said.
Mega Prime currently exports to 30 countries, mostly those with large overseas Filipino worker populations. — Justine Irish D. Tabile
