SAN MIGUEL Food and Beverage, Inc. (SMFBI) — previously known as San Miguel Pure Foods Co., Inc. — is expected to generate P33 billion in earnings this year, once the beer, food, and liquor businesses are fully consolidated under its portfolio, according to sources.
San Miguel Brewery, Inc. (SMBI) is slated to contribute P24 billion to SMFBI this year. The Pure Foods business will account for P8 billion, while Ginebra San Miguel Inc. (GSMI) will provide P1 billion, sources said Friday.
Meanwhile, San Miguel Corp. (SMC) President and Chief Operating Officer Ramon S. Ang said that he will serve as the president of SMFB, with the incumbent chiefs of SMBI, Pure Foods, and GSMI to serve as the respective division heads of the beer, food, and liquor businesses.
SMC announced in November last year that it will be consolidating its traditional businesses under one company through a P336-billion share swap transaction. In preparation for this, Pure Foods’ corporate name was changed to SMFBI, and its primary purpose amended to include the production of alcoholic and non-alcoholic beverages.
So far, SMC has filed for an increase of its authorized capital stock with the Securities and Exchange Commission (SEC), alongside the deed of exchange of shares between SMC and SMFBI. This involves the transfer of SMC’s shares in SMBI and GSMI to SMFBI in exchange for new shares that will be issued out of the increase.
““This is still pending with the SEC,” SMFBI Corporate Secretary Alexandra B. Trillana said during the company’s annual shareholders’ meeting in Mandaluyong City yesterday.
Once the units are consolidated, SMFBI will have a public float of around 4%. The company will then conduct a follow-on offering in order to meet the minimum public ownership (MPO) required by the SEC of listed companies.
SMFB’s shareholders on Friday approved the delegation to management for the conduct of the necessary steps to meet the 15% MPO.
The food business said it remains optimistic for growth prospects in 2018.
“In 2018, we should be able to sustain profitability coming from 2017, that is the expectation. It’s still going to be a good year,” SMFBI President Francisco S. Alejo III said during the shareholders’ meeting.
Mr. Alejo said they have just opened a new hotdog plant in Cavite, which has doubled its capacity. For feed mills, the company is now operating a new plant in Mariveles, Bataan, and will be inaugurating a Bulacan plant this year.
For the flour business, the company is in advanced stages of constructing a new facility in Mabini, Batangas that will double its capacity as well.
“We expect that these new capacities will really sustain profitability in the future,” Mr. Alejo said.
Shares in SMFB dipped five centavos or 0.08% to close at P64.95 each at the Philippine Stock Exchange on Friday. — Arra B. Francia

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