SMPF to open Laguna facility in 2019

SAN MIGUEL Pure Foods Company, Inc. (SMPF) is on track to complete a new manufacturing facility that will produce ready-to-eat products in Laguna by the first quarter of 2019.

In a statement issued over the weekend, SMPF said the Sta. Rosa, Laguna facility will produce products that address the demand for convenience as well as capture a larger chunk of the consumer market.

“Once operational, it will produce fully cooked viands and heat-and-serve meals that will serve growing consumer demand for convenient, nutritious meals differentiated by home-cooked taste, rich quality, and the highest levels of food safety,” the company said.

The new facility also looks to serve the operational needs of food service clients, alongside the export of products that will be ready for consumption.

SMPF has already secured incentives from the Board of Investments for the 20,000-square meter facility. The company will be employing local businesses, farmers, and animal growers, in line with the Department of Trade and Industry’s inclusive business program, that will create an integrated supply chain.

Last year, the company said it is setting aside P56 billion in capital expenditures over the next three years for the construction of six feed mills, grain terminals, poultry processing plants, processed meat plant, and chicken processing facilities, among others.

The company is merging with beverage businesses of its parent, San Miguel Corp. (SMC).

In November 2017, SMC announced it will consolidate its traditional businesses under one unit through a P336.35- billion share swap deal. The resulting entity would be called San Miguel Food and Beverage, Inc. (SMFBI), which will then have a market capitalization of $12 billion.

The company was able to secure shareholder approval for the merger in January.

SMFBI is slated to conduct a $ 1.5- billion follow- on offering later this year in order to increase its public float to the minimum requirement of 15%. After the merger of SMPF with San Miguel Brewery, Inc. and Ginebra San Miguel, Inc., SMFBI will have a public float of only 4.3%, the company said.

SMC recorded a net income attributable to the parent of P20.9 billion in the January to September 2017 period, 19% lower than the same period in 2016, despite a 19% uptick in revenues to P596.9 billion.

On the other hand, SMPF’s attributable profit rose 25% to P4.5 billion in the first three quarters of 2017, after a 4% increase in revenues to P84.5 billion for the period. —