SMC unit posts 10% profit rise as beer sales jump

SAN MIGUEL Food and Beverage, Inc. (SMFB) posted a 10% increase in consolidated net income to P34.7 billion in 2022 as sales volume expanded by double digits, the company said in a media release on Wednesday.

“SMFB’s results prove the resilience of our business model as we navigated a very difficult environment in 2022,” SMFB President and Chief Executive Officer Ramon S. Ang said.

Consolidated revenues for the San Miguel Corp. (SMC) subsidiary grew by 16% to P358.9 billion due to higher volume growth in its beer, spirits, and food sections.

Its earnings before interest, taxes, depreciation and amortization (EBITDA) grew by 12% to P62.7 billion, while its income from operations rose by 11% to 48.7 billion.

The company said revenues from its beer business, San Miguel Brewery Inc., rose by 17% to P136.2 billion, driven by the rise in domestic operations and easing COVID-19 restrictions, a “buoyant” economy, and “robust” consumer spending.

Its international operations saw a 10% growth in income from operations to P29.5 billion, mostly due to export earnings and gains in its Indonesia and Thailand operations.

Its beer business also saw a 10% increase in EBITDA to P36 billion.

Additionally, SMC’s spirits business, Ginebra San Miguel, Inc., saw a 13% growth in income from operations to P6 billion as sales increased by 11% to P47.3 billion due to price increases and higher volumes.

Ginebra’s EBITDA rose 7% to P6.7 billion.

The company said its spirits business “continues to invest in strengthening brand equity and expanding distribution reach to further its market presence.”

Meanwhile, San Miguel Foods, Inc. saw 16% higher revenues at P175.3 billion after distributions, promotional activities, and new product launches. Its operating expenses grew 15% to P13.3 billion, while its EBITDA increased by 18% to P20.1 billion.

“Looking to 2023, we expect to continue to deliver operational excellence and invest in growth to drive long-term value for our shareholders,” Mr. Ang said.

“At the same time, we will continue to ensure that our products are within reach of every Filipino,” he added.

On Wednesday, shares in SMFB remained unchanged at P52.50 apiece, while Ginebra shares rose by 14.17% or P18 to close at P145 each. — Adrian H. Halili