GINEBRA SAN Miguel, Inc. (GSMI) said higher sales volumes of its flagship brands had driven growth in its first-quarter net income, which nearly doubled to P255.47 million from P129.41 million in the same period last year.
The hard liquor unit of San Miguel Corp. told the stock exchange that consolidated revenues in the first three months rose by 24% to P6.4 billion.
Ginebra San Miguel and Vino Kulafu are the company’s flagship brands.
The company said its “solid results” arose from “focused marketing and selling programs that strengthened its brand equity, along with efforts to manage costs.”
Operating income during the period grew by 58% to P478 million.
“2017 was a significant year for us, as we registered higher volumes for the fourth straight year. Our flagship brand’s campaign, ‘Ganado sa Buhay’, was received well by consumers,” said Eduardo M. Cojuangco, Jr., GSMI president and chief executive officer, in a statement.
“Towards the end of 2017, we launched a new campaign, ‘Ginebra Ako’, which is currently driving growth. We remain committed to lead the industry and position ourselves to deliver long-term growth for many years to come,” he added.
GSMI reported a net income of P602 million in 2017, a surge of 67% from 2016 and the highest in the last seven years. Consolidated revenues during the year hit P20.9 billion, up 12% from the previous year because of higher sales volumes.
The company said it is looking to expand its product portfolio “to deliver more profitable and durable growth in the years ahead.”
It launched last year two new gin variants, namely: GSM Blue Flavors Gin Pomelo and GSM Blue Flavors Margarita. The two are aimed at the younger market. It also reintroduced Añejo Gold Medium Rum, which it describes as a moderate-strength rum product.
GSMI is the maker of gin brands, Ginebra San Miguel, and other liquor products, including GSM Premium Gin, GSM Blue, GSM Blue Flavors, Antonov Vodka, Vino Kulafu, Don Enrique Tequila, Añejo Gold Medium Rum and Primery Light Brandy.
On Friday, shares in the company rose 6.52% to close at P20.75 per share. — Victor V. Saulon
