Price hike of San Miguel Food & Beverage products looms
Consumers buying San Miguel Food and Beverage products — including Magnolia chicken, Star Margarines, San Mig coffee, and San Miguel beer — may soon see an increase in prices of these products.
This, as a report in Philippine Star showed, the company is planning to raise of the price for some of its products to offset the losses it incurred from higher imported raw materials.
“In our case, we grew our revenues in the first quarter by 11.9 percent, but even if you look at our volumes, it is better than similar period last year… Where we are down is the net income because there are a lot of pre-operating expenses and also because of the movement of forex [foreign exchange] which has impacted on the cost raw materials, the imported raw materials,” San Miguel Purefoods president Francisco Alejo said in the report.
Alejo said the company should make some adjustments to be able to recover from that throughout the rest of the year.
“We have three quarters to go for making those adjustments which may include some degree of price increases so we can pass on some of the increases in our cost,” Alejo said.