SMFB income drops 37% as beer, food businesses contribute less

SAN MIGUEL Food and Beverage, Inc. (SMFB) posted a 37% decline in earnings for the nine months through September due to lower contributions from its beer and food segments.

In a statement on Wednesday, the company said its net income stood at P14.36 billion for the January-to-September period, down 37% from the P22.92 billion it reported a year ago.

Revenues also dropped 14% to P194.56 billion, as signs of recovery in the third quarter failed to offset the slowdown in the first two quarters of the year.

San Miguel Brewery, Inc., which accounts for the SMFB’s beer business, posted a net income of P11.08 billion, down 44% from last year’s P19.84 billion. Its revenues likewise fell 30% to P72.48 billion.

The company said this is due to the continued closure of on-premise channels, limiting the recovery of beer demand despite the lifting of the liquor ban.

The food segment, through San Miguel Foods, posted a net income of P1.55 billion, lower by 13% from last year’s P1.78 billion. Revenues dipped 4% to P96.74 billion despite increased demand for canned meats and hotdogs.

What tempered SMFB’s bottomline was its spirits business through Ginebra San Miguel Inc. The company posted a 67% jump in net income to P2.21 billion, as revenues rose 18% to P25.34 billion.

“This is an encouraging development that proves we are on track to recovery. We came out of the quarter confident in the resilience of our businesses and determined to deliver on our commitment to continue helping fight the pandemic and the country heal,” SMFB President and CEO Ramon S. Ang said in the statement.

SMFB shares closed at P63.40 each on Wednesday, up 60 centavos or 0.96%. — Denise A. Valdez