SMC’s F&B unit earns P7.34 biliion in H1

MANILA, Philippines — San Miguel Food and Beverage Inc. (SMFB), the food and beverage unit of congolerate San Miguel Corp. (SMC), reported a net income of P7.34 billion in the first half, roughly half of the P14.7 billion it posted a year ago.

Consolidated revenue declined by 19 percent to P122.82 billion as the  negative impact of the coronavirus pandemic weighed on SMFB’s volume performance in the second quarter, especially for its beer and spirits divisions.

Restrictions that accompanied the quarantine measures included closures of food service and retail establishments, liquor bans, as well as limitations on movement and delivery of goods.

All these affected the business during the period, the company said.

To counter trade limitations, the food division implemented non-traditional selling channels including mobile stores, community reselling in barangays and villages, and the utilization of online ordering platforms and home deliveries.

As a result, San Miguel Foods (SMF) more than doubled its net income to P1.34 billion on consolidated revenues of P65.18 billion.

San Miguel Brewery Inc.’s consolidated revenues amounted to P42.79 billion, down 39 percent as a result of the liquor bans implemented in mid-March.

SMB’s international operations likewise reflected the effect of different levels of lockdowns and restrictions in the markets where it operates such as Indonesia.

While volumes of Ginebra San Miguel Inc. (GSMI) declined during the quarantine, there was a quick rebound as restrictions eased and liquor bans lifted in most of its key markets and resulted in record sales in June.

As a result, GSMI’s consolidated revenues slightly went up to P14.8 billion.

Moving forward, SMFB president and chief executive officer  Ramon Ang said  the company is reducing its planned expenses for the year without sacrificing long-term investments.

“As the pandemic continues to affect our everyday lives, we keep in mind that this is only temporary. We remain steadfast in our commitment to ensure food sufficiency and help and provide opportunities to the most vulnerable communities,” Ang said.