San Miguel Food and Beverage Inc. (SMFB) reported almost flat earnings in the first quarter, largely due to supply chain disruptions and a sharp hike in raw material costs owing to Russia’s prolonged military presence in Ukraine.
This, despite the nine percent rise in consolidated revenues to P83.1 billion on higher sales volumes and better pricing across multiple categories in its beer, spirits, and food businesses.
The food business registered P40.8 billion in consolidated revenues, up 13 percent on robust demand.
The animal nutrition and health and flour segments posted strong double-digit revenue growth, while poultry and processed meats also saw an improvement in sales.
Revenues from the beer business went up three percent to P29.7 billion.
The spirits business sustained its growth trajectory as revenues increased by 11 percent to P12.6 billion.
“We remain optimistic and steadfast in pursuing strategies that will drive long-term value for our shareholders. As the market continues to be dynamic, we will continue to manage the inflationary environment with the same level of discipline that carried us through the years,” said SMFB president and CEO Ramon S. Ang.