SMFB’s consolidated income falls 5% as costs rise

SAN MIGUEL Food and Beverage, Inc. (SMFB) saw its consolidated earnings drop by 5% in the first six months of the year, weighed down by higher costs amid a double-digit increase in revenues.

In a statement issued Wednesday, the listed food and beverage company said consolidated net income fell to P14.7 billion due to “cost and pricing pressures from the food group.”

The rise in costs dampened the 10% uptick in revenues to P151 billion.

San Miguel Brewery, Inc., which sells brands such as Red Horse and San Miguel Pale Pilsen, saw revenues climb by 12% to P70.3 billion after volumes also rose by 10%. The unit’s net income accordingly gained 12.4% to P13.3 billion.

For hard liquor manufacturer Ginebra San Miguel, Inc. (GSMI), revenues grew by a fifth or 20% to P14.7 billion. The company said marketing efforts helped increase volumes by 17% for the period, most of which came from flagship brand Ginebra.

With this, GSMI’s net income grew by 94% to P980 million.

The food group, composed of brands such as Magnolia, Purefoods, Star, and Magnolia, reported a 5% uptick in revenues to P66.1 billion. The company did not disclose the segment’s net income, but noted that the poultry business was feeling the impact of an industry-wide oversupply since late 2018.

“Despite challenges impacting some of our businesses, we remain positive about the company’s overall growth prospects given our unique position to capture the opportunities directly linked to our fast-growing economy,” SMFB President and Chief Executive Officer Ramon S. Ang said in a statement.

Shares in SMFB added 0.96% or P1 to close at P105 each at the stock exchange on Wednesday. — Arra B. Francia