Profile: San Miguel Corp (SMGBY.PK)
24 Sep 2014
San Miguel Corporation (SMC), incorporated on August 21, 1913, is engaged in businesses, such as beverage, food, packaging products power, fuel and oil, infrastructure, mining, telecommunications, property development, and aviation. The Company operates under seven segments: beverage, food, packaging, power generation and distribution, fuel and oil, infrastructure and telecommunications. The Company’s operations include the production and marketing of ready-to-cook and processed chicken, fresh pork and beef and value-added meats, milk, butter, cheese, margarine, ice cream, flour products, coffee, cooking oil and animal and aquatic feeds. In October 2013, Privado Holdings Corp raised its stake from 0.166% to 11.382% in San Miguel Corporation. Effective December 11, 2013, JG Summit Holdings Inc acquired a 27.12% interest in Manila Electric Co, from San Miguel Corp.
The beverage segment produces and markets alcoholic and nonalcoholic beverages. The Company’s beverage business consists of brewing, distilling, selling, marketing and distributing beer, liquor and non-alcoholic beverages. SMC conducts its beverage business through majority owned subsidiaries: San Miguel Brewery Inc. (SMB) for beer and Ginebra San Miguel, Inc. (GSMI) for liquor and non-alcoholic beverages. SMB has brewery and sales operations in China, Hong Kong, Thailand, Vietnam and Indonesia through its wholly owned subsidiary, San Miguel Brewing International Ltd. SMB exports its beer products to over 40 countries, with key markets in the United Arab Emirates, Japan, Sudan, Taiwan, Malaysia, Singapore and the United States. Exports of SMB are primarily sold under various San Miguel brands as well as under private labels.
The food segment includes, among others, poultry, feeds production and selling, livestock farming, processing and selling of basic meat products, processing and marketing of refrigerated and canned meat products, manufacturing and marketing of flour product, premixes and flour-based products, dairy-based products, breadfill desserts, cooking oil, importation and marketing coffee and coffee-related products. The Company’s domestic food operations are comprised of San Miguel Pure Foods Company, Inc. (SMPFC) and its subsidiaries, which include San Miguel Foods, Inc. (SMFI), San Miguel Mills, Inc. (SMMI), The Purefoods-Hormel Company, Inc. (PF-Hormel), Magnolia Inc. (Magnolia) and San Miguel Super Coffeemix Co. (SMSCCI), Inc. SMPFC holds in its portfolio the names of some of the formidable brands in the Philippine food industry, among them, Magnolia, Purefoods, Tender Juicy, Monterey, Star, Dari Creme, B-Meg, San Mig Coffee and JellYace.
The San Miguel Packaging Group (Packaging Group) is a packaging solutions business servicing many of the region's food, pharmaceutical, chemical, beverages, spirits and personal care manufacturers. With clients in the Asia-Pacific, Middle East, Africa and the U.S. markets, the Packaging Group is involved in the production and marketing of the packaging products, among others, glass containers, glass molds, polyethylene terephthalate (PET) bottles and preforms, PET recycling, plastic closures, corrugated cartons, woven polypropylene/kraft sacks and paperboard, pallets, flexible packaging, plastic crates, plastic floorings, plastic films, plastic tubes, plastic trays, plastic pails and tubs, plastic consumer and industrial containers, crate and pallet leasing, metal closures and two-piece aluminum cans, woven products, industrial laminates and radiant barriers. It is also involved in PET bottle filling, graphics design, packaging research and testing, packaging development and consultation, contract packaging and trading.
The Company’s primary property subsidiary, 99.68% owned by SMC Group. SMPI is presently engaged in property development, sale and lease of real properties, management of strategic real estate ventures and corporate real estate services.
Power Generation and Distribution
The power generation and distribution segment is engaged in power generation and distribution and mining. The power generation assets supply electricity to a variety of customers, including Meralco, electric cooperatives, industrial customers and the Philippine Wholesale Electricity Spot Market (WESM). Global is the IPPA for the Sual, Ilijan and San Roque power plants, which have a combined contracted capacity of 2,545 megawatts. The Sual power plant is a coal-fired power plant, the Ilijan power plant is a natural gas-fired power plant and the San Roque power plant is a hydro-electric power plant.
Fuel and Oil
The fuel and oil segment is engaged in refining and marketing of petroleum products. SMC operates its fuel and oil business through Petron, in which SMC holds a 68.26% interest. Petron refines crude oil and markets and distributes refined petroleum products in the Philippines and Malaysia. Petron possesses oil distribution infrastructure in the country with more than 32 depots, terminals and airport installations and over 2,015 retail service stations in the Philippines. Petron also exports various petroleum products and petrochemical feedstock, including high sulfur fuel oil, naphtha, mixed xylene, benzene, toluene and propylene, to customers in the Asia-Pacific region.
The infrastructure segment is engaged in the business of construction and development of various infrastructure projects such as airports, roads, highways, toll roads, freeways, skyways, flyovers, viaducts and interchanges. SMC has invested in companies which hold concessions in various infrastructure projects. San Miguel Holdings Corp. (SMHC), through its subsidiary, Rapid Thoroughfares, Inc. acquired a 35% stake in Private Infra Development Corporation (PIDC) which holds a 35-year concession to build and operate an 88.6 kilometer two-lane expressway that connects Tarlac, Pangasinan and La Union.
The telecommunications segment is engaged rendering all types of domestic telecommunications services. It also provides international telecommunications services.
The Company competes with Asia Brewery, Inc., Emperador Distillers Inc., Tanduay Distillers Inc. Gilbey’s, Absolut, Coca-Cola Company, Pepsi-Cola Products Philippines, Asiawide Refreshments Corporation, Asia Brewery, Inc. Universal Robina Corporation, Del Monte Philippines, Nestle Philippines. Univet Nutrition and Animal Healthcare Co., Universal Robina Corporation (URC), Pilmico, New Hope, Charoen Pokphand Foods, Tateh, Bounty Fresh Foods, Inc./Bounty Agro Ventures, Inc., Cobb Vantress Philippines, Inc., URC, Robina Farms, Foremost Farms, Philippine Foremost Milling, Pilmico Foods Corporation, Foodsphere, Inc. (CDO), Virginia Foods, Inc. (Winner and Champion), RFM (Swift), Mekeni Food Corporation (Mekeni), Pacific Meats Company, Inc, (Argentina and 555), Ayala West Grove Heights, Nuvali, Georgia Club, South Forbes Bali Mansions, Eton City, Tierra Nevada, Governor's Hills and Cybergreens, Avida Settings Cavite, Bellefort Estates, Lancaster Estates, Amaia Scapes, Lopez Group, Aboitiz Group, the Philippine Long Distance Telephone Company, Globe Telecommunications, Inc. and Digitel Telecommunications Philippines, Inc.
San Miguel Corp
40 San Miguel Avenue, Metro Mani
Manila Central Post Office
P.O.: Box 271
Company Web Links
- UPDATE 2-Philippines may seek fresh bids for $790 mln toll road
- Philippines considers seeking fresh bids for $790 mln toll road project
- Manila's San Miguel sees bank unit sale soon, eyes overseas oil and gas deal
- UPDATE 1-Manila's San Miguel sees bank unit sale soon, eyes overseas oil and gas deal
- San Miguel sees sale of bank unit soon, eyes overseas oil and gas acquisition