SMFB earns P9.9 billion in Q1

MANILA, Philippines — San Miguel Food and Beverage Inc. (SMFB), the listed food and beverage company of conglomerate San Miguel Corp., maintained its growth momentum  as  it  reported an eight percent increase in its net income in the first quarter to  P9.9 billion.

This was despite a challenging environment, including inflationary pressures, excise tax increases and continuing geopolitical uncertainties, said SMFB president and CEO Ramon Ang.

The company raked in consolidated revenue of P93.2 billion, up 12 percent due to  strong volume growth from its key businesses.

Ang said the  different brands of SMFB remain top-of-mind of consumers despite the difficult environment.

“We intend to sustain this momentum by investing further in brand-building efforts and innovation to further drive growth,” Ang said.

He said SMFB is focused on optimizing resources and processes for better efficiency.

This would help sustainably manage the current businesses for long-term profitability, Ang said.

Among the different businesses, SMFB’s beer business posted strong first quarter results, with consolidated sales reaching P38.3 billion or an increase of 29 percent from the same period last year.

Both the local and international beer operations posted positive sales performances as COVID-19 restrictions eased in most markets.

Sales from domestic operations jumped by 29 percent to P34 billion, largely on account of higher sales volume. Domestic beer volumes grew 26 percent on the back of new brand campaigns and offtake-generating programs.

Likewise, revenue from its international operations rose 27 percent largely as a result of stronger volumes, particularly from its export, as well as  Hong Kong, South China, Thailand, and Vietnam operations.

As a result,  the beer business’ net income rose by 38 percent to P6.8 billion.

SMFB’s spirits business, meanwhile, reported a net income of P2.5 billion, up 81 percent from the previous year as revenues rose by three percent to P12.9 billion.

The food business improved as well, rising by three percent to P41.9 billion, driven by strategic pricing across all its segments. Almost all food segments delivered higher revenue growth.

Demand for its branded business products remained steady, benefiting from the continued normalization of economic activities in the post-COVID-19 era.