SMFB revenues up 27% in H2

MANILA, Philippines — San Miguel Food and Beverage Inc. (SMFB) registered higher revenues in the second half.

SMFB president and CEO Ramon Ang said the worst of the pandemic is over and the company looks forward to 2021 with optimism.

“We will continue to adapt to the changing market conditions and leverage on lessons learned. Soon, we will re-emerge stronger and more resilient on the path to long-term profitable growth,” Ang said.

Revenues rose by 27 percent to P156.5 billion in the second half while consolidated operating income jumped 94 percent to P22 billion.

Ang said despite the challenges of 2020, the company was still able to deliver volume growth in the remainder of the year.

“While 2020 was extremely challenging, our businesses were able to pivot and deliver significant volume growth for the balance of the year. These encouraging results demonstrate the company’s resilience in the face of the global crisis and positions it for a strong and stable recovery,” Ang said.

However, full-year net income amounted to P22.4 billion, down 30 from P32.38 billion as consolidated revenues decreased by 10 percent to P279.3 billion.

The company’s profits were driven by San Miguel Brewery Inc. (SMB) which posted volume growth in the second half following the lifting of liquor bans in various areas of the country.

SMB ended the year with consolidated revenues of P107.9 billion, backed by company-initiated consumption-generating programs, direct-to-consumer initiatives and cost containment efforts. EBITDA and net income amounted to P29.6 billion and P17.5 billion, respectively.

SMB’s international operations also benefited from easing of restrictions in the second half of the year. Its Hong Kong, South China, Vietnam, and Export markets delivered profits significantly better than 2019.

Ginebra San Miguel Inc. (GSMI) continued its strong performance amidst the pandemic, delivering volumes of 38.6 million cases, eight percent higher than the prior year. Net income rose 65 percent to P2.8 billion. Revenues amounted to P36.2 billion while EBITDA rose 25 percent to P5 billion.

Consolidated revenues of San Miguel Foods, meanwhile stood at P135.2 billion, slightly lower than the previous year. EBITDA was eight percent higher year-on-year at P12.2 billion.