SAN MIGUEL Food and Beverage, Inc. (SMFB) announced on Wednesday that its first-quarter consolidated income increased by 1% to P12.7 billion, propelled by higher sales and better product pricing.

Excluding nonrecurring gains related to the Corporate Recovery and Tax Incentives for Enterprises Act, or CREATE law, the company’s net income for the quarter was up by 1% to P9.2 billion.

“We remain optimistic and steadfast in pursuing strategies that will drive long-term value for our shareholders. As the market continues to be dynamic, we will continue to manage the inflationary environment with the same level of discipline that carried us through the years,” SMFB President and Chief Executive Ramon S. Ang said in a statement on Wednesday.

Consolidated revenues grew 9% to P83.1 billion, driven by a combination of volume growth and better pricing across multiple categories in its beer, spirits, and food businesses.

“As with other consumer goods companies, SMFB was faced with rising input costs on raw materials and utilities, squeezing profits and muting the gains from volume growth compared to the same period last year,” the company said.

Consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) were also up 1% to P15.7 billion.

Of its businesses, the food segment reported a 13% jump in consolidated revenues to P40.8 billion as demand for its brands remained robust.

However, its consolidated EBITDA for the first quarter of the year fell by 6.6% to P5.7 billion, while consolidated operating income dropped by 6.7% to P4.2 billion, impacted by inflationary pressures.

The animal nutrition and health and flour segments posted double-digit revenue growth while poultry and processed meats also recorded higher sales.

“Advertising and promotional campaigns, expansion of distribution networks, superior product quality, and better pricing all contributed to the growth” of the food business, SMFB said.

Meanwhile, the beer business reported a 3% rise in revenues to P29.7 billion on account of improved volumes in its international operations and price adjustments.

Its EBITDA and income from operations were flat in the first quarter at P8 billion and P6.8 billion, respectively.

SMFB said its beer business would continue to implement “cost management initiatives” to preserve profits.

For the rest of the year, the segment’s prospects have been boosted by the reopening of on-site channels after the lifting of pandemic restrictions, it added.

The spirits business reported that revenues jumped 11% to P12.6 billion due to “strong thematic campaigns, consumer promotions, a broadening distribution network, and efficiencies all supported growth.”

The EBITDA of the spirits business rose 32% to P2 billion, while income from operations increased 39% to P1.8 billion.

At the stock exchange, SMFB shares fell by P3.05 or 5% to P57.95 apiece. — Luisa Maria Jacinta C. Jocson