SMFB profit surges to P17.4 billion in H1

MANILA, Philippines — San Miguel Food and Beverage Inc. (SMFB) reported a 137 percent growth in consolidated net income to P17.36 billion in the first half, surpassing pre-pandemic profits in the same period in 2019.

Consolidated revenues grew 20 percent to P146.79 billion with EBITDA up 66 percent to P29.28 billion.

SMFB president and CEO Ramon Ang attributed the company’s first half performance to “the agility and adaptability of the food and beverage businesses, in the face of unprecedented challenges brought about by COVID-19.”

“As the situation continues to evolve, the flexibility and resilience we developed this past year will enable us to move forward and pivot quickly as needed,” Ang said.

By business segment, the Food Group raked in consolidated revenues of P72.24 billion during the period, up 11 percent.

The Food group’s consolidated EBITDA doubled to P11.44 billion, while operating income increased more than three-fold to P8.36 billion on higher gross profit and lower selling, general, and administrative expenses.

The beer business was also able to recover with consolidated sales volumes improving 15 percent versus last year, with the easing of quarantine restrictions and lifting of liquor bans in its markets.

This resulted in consolidated revenues of P54.33 billion for the first half, up 27 percent from a year ago.

the first half of the year

The spirits business generated revenues of P20.23 billion, 36 percent higher than the previous year, resulting in a net income of P2.09 billion, up 66 percent. Net income from operations rose 45 percent to P2.61 billion during the period while EBITDA increased 35 percent to P3.10 billion.

Despite the positive performance of the company, Ang said there is still some uncertainty due to the pandemic.