A little more than three years have passed since the citrus sange -Migel transformed his business and refused to sell fresh fruits dedicated exclusively to the industrialization of lemon. Today, when three plants distributed in three different countries have already achieved positive results and resort to the capital market to grow even more before the growth of world demand for natural products.
His new general director, Manuel Suarez Altun, took this position at the beginning of the year instead of Pablo Pla. Nevertheless, he accompanied the process of reconnecting the company since the company’s shareholders, Otero Monsgur and Miguens Bomberg Families decided to change the course.
Currently, taking into account local macroeconomic stability and improvement of financing opportunities, San Migel focuses on the effectiveness of its production, both industrial and agricultural, and even the best yield is guaranteed in the short term. In fact, he has already received a visit to world financial organizations to finance projects in the future.
-What are the following steps in the rank of migel, what are the following steps?
-We decide to get out of fresh fruit business in order to focus on the production of natural ingredients. When the lemon is processed, three products are produced for food and drinks. This is essential oil, concentrated juice and dehydrated peel. In this business, San Migel is a number one processor around the world, because, from 380,000 tons processed among our three sources (Uruguay, Argentina and South Africa), we centralize a 16% of the world’s share. Over the next two years, we plan to achieve 20% of participation in the world market. This will happen when the plants of Uruguay and South Africa, both discovered in 2023, reach their maturity. At that time we will project 450,000 tons of fruit.
-You see the results of the change, of course?
-This was a very ambitious project because it included two plants in 18 months. The whole structure was simultaneously, and, in turn, we had to control in 2023 on their own. But even this year we could notice a very significant improvement in our results. We came from an important loss in 2022, which was associated with the fall of international lemon prices that arose as a result of our fresh fruit business. But we also had a lot of costs for restructuring. In 2023, we managed to get a positive EBITDA in the amount of 1 million US dollars, which in 2024 was transformed into $ 9 million.
-How does business work in Argentina?
-In recent months, we have been faced with higher price conditions in the lemon market, which is restored after several years of depressive values. Although we will not see the results in 2025, we already notice a significant change in the trend that will be seen more clearly next year. In addition, we believe that the recent economic measures of the government, such as CEPO, preferred us as exporters. Even earlier, such decisions as the elimination of the country’s tax were facilitated, especially for importing supplies and equipment, as this allowed us to accept the best conditions for payment with suppliers. We believe that the current Argentine macroeconomic context is very good for a company like ours.
-What, what’s the point?
-From the last quarter of last year, we began to receive visits that reminded me of the conversion time when various international banks began to appear, because they foresaw that there would be conditions for easy income and graduation, as well as greater profitability. This is already happening, and we evaluate the long -term financing structures, but the thinking of 2026 and 2027. I believe that a compound is very observed between Argentina, and that San Migel is at a time when he can demonstrate, in particular, that redirecting gives results.
-And Uruguay and South Africa?
-projects of Uruguay and South Africa are designed to achieve their maturity for two years, since plants are powered by lemons planting that are not in full production and occupy from six to seven years to reveal their maximum potential.
-What is the provision of fruits?
-In Uruguay, 100% of lemons have their own production, while in South Africa this comes from long -term contracts with local manufacturers. This year in Uruguay, we will project 72,000 tons of lemon to 60,000 last year, and in South Africa we plan to process 62,000 people against 39,000 last year. We see how the projection of our business is growing according to a function that also increases our fruit treatment in plants. These projects have low volatility because we work with long -term contracts. We want to guarantee that our fruits will also be able to deliver our products for a term. Then, from the simple fact of the maturity of both projects in plants, we expect strong growth, accompanied by low volatility.
-Are there new folders?
-Oxos are well recognizable for our ability to develop new products. So, we are constantly looking for new alternatives to the same lemon processing. Currently, we analyze two or three products, except for those that we are already processing that, perhaps, they can be an additional line of income for what we have as lemon derivatives.
-K -God San Migel changed the general director and president. How is this translation inside?
-In practice, there were no changes in management. With regard to how the company is organized, the General Director reports the Executive Committee, which consists of four shareholders. Two from the family of Otro Montsegur and two from the family Migsens Bombberg. Then the general director reports to the whole committee. But, according to the agreement between families, the company’s presidency alternates every three years.
-What is the relationship with the shareholders?
-Ko -s are present in the company. In fact, they supported the restructuring of the company and even signed capital last year. We conducted almost $ 68 million, of which 46 million dollars came from the control group. That is, they not only agree with the company, but also contribute to their own capital. In turn, in the assembly of the latest shareholders, in April of this year, the implementation of the second subsequent was approved in the second semester of 2025. This will be mainly allocated to strengthen the capital structure of the company. In addition, we plan to leave with a contractual obligation to this environment, May 14. The goal is to improve the profile of the maturity of the debt, and we strive to collect 10 million US dollars.
-What today is the biggest complication for business?
-Nash the operation is open, and the general enemy is usually climatic conditions. However, having three origin, if in the end there is a severe frost in Argentina, we can provide the same client from two other plants. So, today the biggest problem is the operating room. We are talking about getting effective factories for work in accordance with business needs.
-And the exchange rate?
-Thinatically affects us as other variables. Similarly, we do not devote a lot of discussion to this problem, because it is a variable that we cannot control. Instead, we work in our economic efficiency, in maximizing our income and in field performance. These are problems that we can control. In any case, being an export business, the gap of exchange has achieved our results. The good news was that the result improved from the income, so Argentina’s competitiveness is loss for the question of costs.
-What is required today to decide to abandon a business selling a business in order to move on to one of the additional cost?
-Theinal conditions are necessary for the development of such investments. Then, the minimum, macroeconomic stability, low rates for access to loans and the creation of capital investments, competitiveness of commercial costs and access. In our case, industrial business has always been less unstable than that of fresh fruits. The latter has very good cycles, and many others are very bad. We made sense to redirect when we saw the possibility of closing long -term agreements. Thanks to this, we had the opportunity to redirect our investments in industrial business.
