SMC to Invest Php32B to Boost Food Business

Manila (PNA) — Philippine diversified conglomerate San Miguel Corp. (SMC) is investing Php32 billion to boost its food business in the next three years, as it expects increase in consumption spending amid elections.

“We have broke ground our flour mill expansion, feed mill, poultry, piggery, slaughterhouse, poultry processing plant, cold storage, hotdog plant (and) canning plant. These are all organic expansion,” SMC president Ramon Ang told reporters following its annual stockholders’ meeting on Tuesday.

Ang said they target to sustain revenue growth at over 30 percent per year especially as elections near.

“Our company mostly consumer products, beer, food (and) whisky definitely those businesses will deliver better performance… I think, usually, there is about 10 to 15-percent higher volume (during) election years,” he said.

SMC is engaged in various industries such as beverages, food, oil refining and marketing, infrastructure, packaging, properties, and power and energy.

SMC Chairman Eduardo Cojuangco Jr. said that over the last seven years, the conglomerate has invested almost Php300 billion in acquisitions to build or round out its portfolio; and about Php150 billion more in existing businesses.

“We expect our new businesses to contribute to faster organic growth –improving both cash flow and overall margins,” he said. (PNA) RMA/LDV