PROFITS of San Miguel Food and Beverage, Inc. (SMFB) climbed 6% in 2019, driven by higher volumes of its products and an increase in average selling prices.
In a statement yesterday, the listed food and beverage arm of San Miguel Corp. (SMC) said its consolidated net income in 2019 stood at P32.28 billion. Consolidated revenues also improved 9% to P310.79 billion.
The main driver of the company’s growth was its beer business, which posted a 10% increase in revenues to P142.27 billion backed by increased beer volumes.
The food segment added P139.46 billion in revenues, up 5% year on year, due to the recovery of its poultry business previously challenged by an industry-wide decline. It noted consumer demand also remained strong for its key products such as Tender Juicy Hotdogs, Purefoods Chicken Nuggets, Purefoods Corned Beef, Magnolia Gold Butter and Star Margarine.
The spirits and liquor segment had the highest jump in revenues at 17% to P29.06 billion. The increase was driven by a 14% rise in volumes, which the company attributed to successful promotional campaigns.
“We continue to remain confident in the strength of the Philippine consumer and resilience of the economy,” SMFB President and Chief Executive Officer Ramon S. Ang was quoted in the statement as saying.
“We believe we have the ability to overcome the challenges we now face as we continue to expand the breadth of our product offerings and reinforce our presence in markets. We remain focused on delivering the best products, and providing improved results to all our stakeholders,” he added.
In a separate disclosure to the stock exchange, SMFB said its board of directors approved looking at alternatives to conduct the company’s annual stockholders’ meeting amid the coronavirus outbreak.
“In light of public health concerns…, the board approved for management to study whether to allow stockholders to attend and vote through remote communication…, and if so, for management to determine the mechanics to implement such mode of voting…,” it said.
The annual stockholders’ meeting of SMFB is scheduled on June 3.
Shares in the company at the stock exchange closed flat on Wednesday at P67 each. Shares in its parent SMC were also flat at P119.50 each. — Denise A. Valdez