San Miguel Foods & Beverage (SMFB), controlled by billionaire Ramon Ang, is spending 30 billion pesos ($ 627 million) to expand the company’s animal feed production capacity amid a strong recovery in the group’s profits.
“We are also in the process of building seven new feed mills,” Ang, president and CEO of SMFB, said at the company’s virtual shareholder meeting on Thursday. Apart from the factories in the green field, which cost approx. $ 50 million each to build, Ang said the company is also expanding the capacity of existing feed mills across the Philippines.
SMEs are expanding their capacity as food and beverage sales return after a decline in 2020, when demand was hit by the economic impact of the Covid-19 pandemic. The company reported a 66% increase in first quarter net profit to 9.7 billion pesos from the year before, when sales improved by 11%.
“As we continue to navigate the pandemic, we remain optimistic about the future and focus on investing in products and innovating in systems that better meet the needs of the Philippines,” Ang said in a statement when SMFB announced its findings for first quarter earlier this month. “We will work hard with greater efficiency and flexibility so that our country can emerge from this pandemic stronger and more formidable.”
SMEs’ plans have been underway well before the pandemic. In an interview with Forbes Asia in 2019, Ang said he aims to more than double the group’s production capacity, which in 2017 amounted to 19 million hl of beer and 2.6 million tonnes of feed within five years.
Ang bought its stake in San Miguel Corp. – The oldest company in the Philippines – in 2012 from the late Eduardo Cojuangco, who died in June last year. Originally a brewery, San Miguel has developed into one of the country’s largest conglomerates with interests in beer, food and infrastructure. Ang, 67, was ranked as the 12th richest person from the Philippines with a net worth of $ 2.3 billion when the world billionaire list was released in April.