San Miguel food, liquor business reports 66% profit rise

SAN MIGUEL Food and Beverage, Inc. (SMFB) posted a 66% increase in net income to P9.68 billion in the first quarter, with its business segments recording robust profit growth year on year.

The company said in a statement on Wednesday that consolidated sales for the period improved 11% to P76.36 billion. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) also rose 35% to P15.63 billion.

SMFB President and Chief Executive Officer Ramon S. Ang said the company’s results for the first quarter is a testament to its resilience amid the coronavirus disease 2019 (COVID-19) pandemic.

“The group has proven its agility and ability to control costs, manage cash, and stay on track to deliver long-term profitable growth while ensuring our products are always available to our customers and vulnerable communities that need them the most,” Mr. Ang said in the statement.

San Miguel Brewery, Inc., the company’s beer business, posted a 45% higher net income at P5.46 billion, while its consolidated revenues climbed 2% to P28.84 billion.

“However, volumes remained depressed with the continued closure of most on-trade channels and the lingering impacts of the enhanced community quarantine in Metro Manila and nearby provinces,” SMFB said.

Net income of SMFB’s Ginebra San Miguel climbed 120% to P1.04 billion, while its consolidated revenues rose 52% to P11.34 billion. The company said the higher revenues were due to a 29% increase in sales volume.

Food segment San Miguel Foods recorded a net income of P3.39 billion, which the company said, “more than doubled from the same period in 2020.” Its consolidated revenues went up 9% to P36.18 billion.

The company attributed the growth of its food unit to strong demand and more stable pricing across all business segments.

“Of note is the 11% year-on-year growth of its protein segment, which continues to recover given improved market demand and supply dynamics. Its prepared and packaged food segment, meanwhile, continues to remain a bright spot for the business, growing 6% as consumers continue to prefer at-home dining,” it said.

Mr. Ang said: “As we continue to navigate the pandemic, we remain optimistic about the future and will stay focused on driving investments in products and innovate on systems that will better address the needs of Filipinos. We will work hard with greater efficiency and flexibility in order for our country to emerge from this pandemic stronger and more formidable.”

On Wednesday, shares of SMFB at the stock exchange dropped 0.92% or 60 centavos to close at P64.40 apiece. — Revin Mikhael D. Ochave