SAN MIGUEL FOOD and Beverage, Inc. (SMFB) posted a net income of P22.4 billion last year, which its top official described as “extremely challenging” but marked by a “strong” rebound in the second half.
SMFB President and Chief Executive Officer Ramon S. Ang said the company’s businesses had been able to deliver volume growth despite the challenges it faced in 2020.
“These encouraging results demonstrate the company’s resilience in the face of the global crisis and positions itself for a strong and stable recovery,” Mr. Ang said in the statement on Wednesday.
The listed company did not give its comparative bottomline in 2019.
For 2020, consolidated revenues dropped 10% year on year to P279.3 billion, while consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) reached P46.8 billion.
“Second half consolidated revenues were up 27% to P156.5 billion from P122.8 billion in the first half while consolidated operating income jumped 94% to P22.0 billion from P11.4 billion in the first semester,” SMFB said.
According to SMFB, profits during the period were driven by its beer business, San Miguel Brewery, Inc. (SMB), which posted growth in the second half of 2020 after the lifting of liquor bans in different parts of the country.
SMB’s net income for 2020 reached P17.5 billion, with its consolidated revenues for the period amounted to P107.9 billion.
“The strong performance was backed by company-initiated consumption-generating programs, direct-to-consumer initiatives and cost containment efforts,” SMFB said.
“SMB’s international operations also benefitted from easing of restrictions in the second half of the year. Its Hong Kong, South China, Vietnam, and export markets delivered profits significantly better than 2019,” it added.
SMFB’s spirits business, Ginebra San Miguel, Inc. (GSMI), posted a net income of P2.8 billion, up 65% year on year after delivering 38.6 million cases despite the coronavirus disease 2019 (COVID-19) pandemic.
GSMI’s consolidated revenues also rose 25% to P36.2 billion, while its EBIDTA climbed 38% to P5 billion.
Meanwhile, consolidated revenues of the company’s food segment, San Miguel Foods (SMF), reached P135.2 billion, while its EBIDTA improved 8% year on year to P12.2 billion.
“Its prepared and packaged food segment benefitted most from the shift delivering a solid double-digit performance in 2020,” SMFB said.
“This segment also helped mitigate the effects of the softening of certain segments, particularly the protein business, as operations of most of its food service customers were affected by community quarantine restrictions,” it added.
Mr. Ang said the company is filled with optimism for 2021, adding that the worst of the COVID-19 pandemic is already over.
“We will continue to adapt to the changing market conditions and leverage on lessons learned. Soon, we will re-emerge stronger and more resilient on the path to long-term profitable growth,” Mr. Ang was quoted as saying.
On Wednesday, shares of SMFB at the stock exchange fell 1.23% or 80 centavos to end at P64.20 apiece. — Revin Mikhael D. Ochave
