Conglomerate San Miguel Corp. said it allocated P700 billion in capital expenditures from 2015 to 2022 to fund the expansion of its brewery, food, power and infrastructure businesses.
San Miguel chief finance officer Ferdinand Constantino said in an interview the amount would be on top of the planned P700-billion airport project in Bulacan, which was under review by the Duterte administration.
Constantino did not say how much the group spent so far out of the P700 billion, but said the balance would be allotted for the construction of two brewery plants, expansion of its food business and construction of infrastructure and power plant projects.
Constantino said the company planned to put up a new brewery in Mindanao and another in Southern Luzon which could increase the company’s beer production by 15 percent.
He said for the food business, San Miguel would spend P60 billion over the next three years to expand poultry, processed meat and flour milling businesses.
Constantino said the company was also completing the second 300-megawatt power plant in Limay while the construction of several infrastructure projects such as the Metro Rail Transit Line 7, Skyway connector road, Boracay Airport expansion and Bulacan bulk water project were ongoing.
Constantino said he expected the amended tax reform program of the government to have a minimal impact on the company’s business.
“The Train [Train Tax Reform for Acceleration and Inclusion] I believe has minimal impact especially on tax on sugar and coal because we are not heavy users of sugar and we can pass on the higher cost of coal. In case of Petron, the higher taxes will also be passed on,” Constantino said.
“We believe there will be short-term adjustments, volume may be moderate in the short term, but eventually people return to their usual consumption,” he said.