SAN MIGUEL Food and Beverage, Inc. (SMFB) reported a consolidated net income of P18.8 billion in the first semester, which the listed manufacturer described as “steady” amid a challenging market environment.

No comparative figure was given by the company but it previously reported the same profit figure a year ago.

In a media release on Thursday, it said revenues in the first half were hit by the rising cost of raw materials, an increase in excise taxes, and elevated logistics costs.

“As uncertainties and risks to the economic environment remain, we will continue to take the necessary actions to mitigate the impacts on each of our businesses, including leveraging on each of our strengths to improve overall performance,” Ramon S. Ang, president and chief executive officer of SMFB said.

“We will continue to invest in building our brands and strengthening our portfolio in order to position SMFB for long-term sustainable growth,” Mr. Ang added.

Its consolidated revenues during the first semester rose by 7% to P184.6 billion due to the combination of volume growth and an efficient pricing strategy.

The company’s beer business, San Miguel Brewery, Inc. recorded a 26% increase in its consolidated net income in the first half to P13.5 billion on the back of strong sales.

Its consolidated sales during the period rose by 14% to P74.1 billion because of improving demand from domestic and international markets.

Revenues from domestic operations went up by 13% to P66 billion, driven by a 9% increase in volumes.

The company said that volume growth was due to the recovery of on-premise channels, resumption of tourism activities, relevant brand campaigns, intensified off-take generating programs, and other initiatives.

In international markets, its revenues increased by 16% after a strong export demand, as well as its Hong Kong, and Thailand markets.

Additionally, spirits unit Ginebra San Miguel, Inc. (GSMI) booked a net income of P4.1 billion, 64% higher than the prior year boosted by volume growth resulting from “strategic marketing campaigns.”

Volumes during the first half inched up by 1% year on year to 22.2 million cases.

“Through well thought-out strategies and campaigns, GSMI has continued to stay on top of its market, and has become a reliable performer and contributor to total San Miguel Group performance. With the initiatives it has launched, we’re looking to further build on its momentum and continue performing well for the rest of the year,” Mr. Ang said in a separate statement.

During the six-month period, the unit’s revenues climbed by 10% to P25.4 billion due to better selling prices.

The company said that its campaign, “Iba and Ngiti Ngayon sa One Ginebra Nation” and a consumer promo in March, sustained brand equity and spurred consumption, “cushioning the effects of a price increase implemented for all GSMI products.”

It added that on-the-ground events also boosted awareness and brought its brands to consumers, coupled with penetration drives and sampling activities in resorts and popular on-premise outlets.

“This was further supported by four pocket launches and 50 bar activations in major cities,” the company said.

Meanwhile, San Miguel Foods, Inc. saw revenues at P85.1 billion as “it continuously provided cost-conscious consumers what they want amid headwinds from higher raw material costs.”

On Thursday, SMFB shares went up by 0.1% or five centavos to close at P50.05 apiece while those of GSMI shares slipped by 0.25% or P0.40 to P158.60 each. — Adrian H. Halili