San Miguel Food and Beverage Inc., the food and beverage unit of conglomerate San Miguel Corp., plans to raise P15 billion from the issuance of fixed-rate retail bonds next year.
San Miguel Food said Friday in a disclosure to the stock exchange it filed with the Securities and Exchange Commission an application to offer P15 billion worth of retail bonds due 2025 and 2027.
The company will use the net proceeds from the offering to redeem the outstanding Series 2 Perpetual preferred shares it issued in 2015.
San Miguel Food plans to redeem the perpetual preferred shares in March 2020 at a price of P1,000 per share.
The company engaged BDO Capital & Investments Corp., BPI Capital Corp., China Bank Capital Corp., Philippine Commercial Capital Inc., PNB Capital and Investments Corp. and SB Capital Investment Corp. as joint lead underwriters and book runners of the offering.
San Miguel Food plans offer the bonds from February 10 to 19, 2020. The bonds will be listed with Philippine Dealing & Exchange Corp. on February 26, 2020.
San Miguel Food’s net income in the first nine months of the year was flat at P22.9 billion as higher sales due to sales volume across all segments of the group were offset by higher costs stemming from increased raw material costs and bigger operating expenses following its expansion initiatives.
Net income of the beer and non-alcoholic beverages segment rose 12 percent to P19.84 billion from P17.76 billion year-on-year, while the profit of the spirits segment jumped 68 percent to P1.32 billion from P789 million a year ago.
However, net income of the food segment decreased 60 percent to P1.75 billion from P4.37 billion in 2018. Consolidated sales increased by 10 percent to P226 billion from P206 billion in 2018.
But consolidated cost of sales increased at a faster rate of 12 percent to P156 billion.
San Miguel Food, previously known as San Miguel Pure Foods Company Inc., was listed in the Philippine Stock Exchange on June 29, 2018 after parent San Miguel approved and implemented an internal restructuring and consolidation of the food and beverage businesses under San Miguel Food.
San Miguel Brewery Inc. and Ginebra San Miguel Inc. were consolidated with the food division under San Miguel Food.