SMFB income up 8% as business units post volume growth

SAN MIGUEL Food and Beverage, Inc. (SMFB) posted a consolidated net income of PHP 9.9 billion in the first quarter, up 8% from the same period the previous year.

“Despite the challenging environment, our brands remain top-of-mind of consumers and we intend to sustain this momentum by investing further in brand-building efforts and innovation to further drive growth,” Ramon S. Ang, SMFB president and chief executive officer, said in a statement on Tuesday.

“We are also focused on optimizing our resources and processes for better efficiency to sustainably manage our current businesses for long-term profitability,” Mr. Ang added.

The company’s consolidated revenues increased by 12% to PHP 93.2 billion in the three-month period, driven by strong volume growth from its key businesses.

Its beer business, San Miguel Brewery, Inc., reported a 38% rise in net income to PHP 6.8 billion after recording higher revenues for the quarter. Its top line increased by 29% to PHP 38.3 billion from PHP 29.7 billion previously.

“Both its domestic and international operations posted positive sales performances with the easing of COVID-19 restrictions in markets where it operates,” the company said.

Sales from its domestic operations went up by 29% to PHP 34 billion due to higher sales volume, which grew by 26% due to new brand campaigns and offtake-generating programs.

The beer unit’s international business, likewise, jumped by 27% on the back of stronger volumes, particularly from exports to Hong Kong, South China, Thailand, and Vietnam.

Ginebra San Miguel, Inc. recorded its net earnings for the period ending March went up by 81% to 2.5 billion, while its revenues amounted to P12.9 billion, up 3% from the same period last year.

Meanwhile, San Miguel Foods, Inc.’s sales improved by 3% to PHP 41.9 billion due to strategic pricing across all its segments.

It said demand for branded business products remained steady as it benefited from the continued normalization of economic activities after the pandemic.

The unit’s consolidated earnings before interest, taxes, depreciation, and amortization amounted to PHP 3.5 billion, which was pulled down by higher commodity prices.

SMFB shares closed unchanged at PHP 47.5 apiece on Tuesday. — By Adrian H. Halili