SAN Miguel Food and Beverage Inc. (SMFB) posted a record-breaking first-half year performance. Consolidated revenues grew 17 percent compared to the same period in 2021 to P172.1 billion in 2022.
This was driven by gains in volume and pricing adjustment across its product lines of beer, spirits and food divisions in order to mitigate the impacts of input cost increases.
Consolidated Ebitda (earnings before interest, taxes, depreciation and amortization) and consolidated income from operations managed to grow 11 percent and 15 percent in the first six months of 2022 to P32.4 billion and P26.6 billion, respectively. The company’s consolidated net income also increased by 8 percent from the same period last year to P18.8 billion.
SMFB’s brewery subsidiary reported consolidated revenues of P65 billion, 20 percent higher from the first half of 2021 on account of improved volumes and a price increase implemented in October last year. The division’s income from operations jumped 22 percent to P14.7 billion in the first half of 2022.
The spirits division revenues increased by 14 percent to P23.1 billion in the first six months of 2022. This was driven by a 9-percent increase in volumes and modest price increases. The sector’s income from operations for the first half of this year also increased by 25 percent to P3.3 billion.
SMFB’s food business sustained its growth and registered first-half consolidated revenues of P84 billion, a 16-percent increase driven by strong volume growth in certain product categories and substantial price pass-ons to absorb increasing raw material costs. Its consolidated operating income for the first half ended at P8.6 billion, or a 3-percent improvement.
While the global macroeconomic outlook remains uncertain and the remainder of the year may continue to be challenging, SMFB said it will continue to implement various strategies and efficiencies to mitigate cost pressures and help protect profits.
“Our financial position and long-term fundamentals remain strong, notwithstanding current macroeconomic headwinds. We remain committed to delivering operational excellence and value to all our stakeholders, as well as good quality products for the everyday needs of all our consumers,” SMFB President and Chief Executive Officer Ramon Ang said.