Publicly listed Liberty Four Mills (LFM) has reached the biggest challenge confronting its 67 years of corporate existence amid the swirl of a brewing family feud, falling profits, and the prospects of transforming from what it is now to what it can and must become resulting from a business environment that is changing. 

Reframing the situation, LFM is no less at a major crossroads to make changes in its operating management and financial strategy, organizational culture and competencies to reverse eroding profit margins, depressed growth rates, and resolve its corporate directions presently under pressure from a turmoil in its flour milling business and pernicious family feud. 

The familial conflict in LFM is a bitter intra-corporate fight between members of the same family, involving the  group led by chairman emeritus William Carlos Uy and his brother John Carlos Uy against the group of Sandra Judy Uy, former president and board member, and Stella Marie Jill Uy, former vice president and assistant treasurer.

In official company disclosures, Stella Marie Jill Uy is not identified as a relative of the controlling Uy family unlike Sandra Judy Uy who, while at odds with the other side, is the daughter of chairman emeritus William Carlos Uy.

The conflict between the two camps is centered on two core issues, namely: corporate governance abuses and financial irregularities. Each party is blaming the other for the misdeeds.

In late 2025, Sandra and Stella Uy already petitioned the Securities and Exchange Commission (SEC) to investigate the board for breach of fiduciary duty and conflict of interest regarding “related-party transactions” with the company’s distributor, Parity Values Inc, (PVI).  

PVI is responsible for about 57 percent of LFM’s sales. It is also LFM’s biggest shareholder but has an accumulated unpaid debt to LFM amounting to P805 million. Because of the inter-locking relationships, LFM officers like William Ang and John Carlos Uy of the controlling Uy group are corporate secretary and president of PVI, respectively.   

PVI’s huge unpaid debts to LFM has put a strain in the latter’s viability and sustainability, forcing a series of property disposals like the sale of the Liberty Building in Makati City to subsidiary LFM Properties Corporation in early 2023.  

In turn, the current Uy leadership launched an internal probe into nine distinct governance issues involving past officers like Sandra and Stella Uy.  These issues include alleged over-procurement of wheat and non-disclosure of zoning problems, which the board claims could cost the company P300 million.

As of the end January 2026, the LFM’s board has made significant changes in its leadership and internal corporate restructure. Notably, the company is working for a reduction of its board size from 11 to 7 members, in keeping with current governance standards. Jamie Marie C. Ang was also elected to the board on January 28, 2026 to take the seat vacated by Daniel R. Maramba, who resigned. This consolidated the hold of the controlling Uy group with John Carlos Uy, the son of chairman emeritus William Carlos Uy, who was already holding the dual role of chairman and president of LFM.  

The board has also reportedly appointed officially a financial advisor to review a potential exit or sale of the flour milling business to resolve its ongoing internal conflicts and financial pressures. It listed “demerger” as one of the several paths it might take, according to its disclosure to the PSE. This would involve separating the traditional flour milling business from the company’s other high-value assets, particularly its real estate holdings.

Industry outlook and performance metrics of LFM and LPC 

Looking closer at the financial performance of the LFM, it looks like the family feud is clouding the visons of the stakeholders, and derailing the company. Based on submitted numbers, LFM has a stable, profitable, and dividend-paying performance. Revenues averaged P1.42 billion from 2020 to 2024. Of note, revenue for 2023 reached P1.544 billion. The company experienced a 14% increase in sales revenue for the nine months ended September 30, 2023, driven by higher sales volume and price adjustments.  

The company has high profitability: it has a “Tailing Twelve Month” (TTM) net profit margin of 41.7%, significantly above industry averages, and with a TTM return on investment (ROI) of 20.64%.  

LFM declared a 3% (P0.30 per share) cash dividend in May 2024, alongside a property dividend involving LFM Properties Corporation, with total assets standing at P4.58 billion as of March 31, 2024.

In early 2024, too, the company started to reel from increased input costs as well as suffer financial strain from the weight of high receivables — by you know who.  

Meanwhile, the Philippine flour milling industry is expanding. Imports of wheat was estimated to have reached 7.2 million metric ton (MT) in 2024-2025 due to population growth and rising demand for bakery products. But along with this development, the market has turned competitive. And amid higher raw material prices, other players like Universal Robina Corporation and San Miguel Food & Beverages Inc. have adapted to new, automated facilities to boost capacity and competitiveness to meet rising demand for bread, pasta, and other wheat-based products.

Challenges and postscripts 

The Philippines relies entirely on imports for wheat, with approximately 95.2% of its requirements sourced from the United States. The market has also become more competitive with 22 active companies, prompting some to diversify their product lines. Nevertheless, strong demand for poultry and aquaculture products keeps feed wheat consumption steady. 

To stay in the play, industry players are increasingly turning to technology to improve efficiency and meet the onslaught of currency depreciation, and pressured gross margins, precipitated by the Russia-Ukraine conflict.  

In summary, LFM’s revenue comes from flour (hard/soft) and feed products (approx. 81%), with a significant portion from rental income (19%).  

Incidentally, a recent study claims that LPC is not a bargain based on current accounting equity. It is a highly leveraged play on the appreciation of its specific buildings. You are essentially paying P1.80 for every P1 of net assets currently recorded on their books. (More on this in a succeeding article.) – Rappler.com

(The article has been prepared for general circulation for the reading public and must not be construed as an offer, or solicitation of an offer to buy or sell any securities or financial instruments whether referred to herein or otherwise. Moreover, the public should be aware that the writer or any investing parties mentioned in the column may have a conflict of interest that could affect the objectivity of their reported or mentioned investment activity. You may reach the writer at [email protected])