San Miguel’s food and beverage arm posts highest ever first half profit, revenue despite rising costs

San Miguel Food and Beverage Inc. (SMFB) delivered an all-time high performance in the first semester, with net income rising eight percent to a record P18.8 billion on robust growth across all its units.

In a statement, SMFB said consolidated revenues jumped 17 percent to an all-time high of P172.1 billion, buoyed by robust sales and pricing adjustment for its beer, spirits and food products despite the challenges of high inflation, rising fuel and raw material input prices, and currency depreciation.

EBITDA and consolidated income from operations grew 11 percent and 15 percent to P32.4 billion and P26.6 billion, respectively.

Revenues from the beer business rose 20 percent to P65 billion on improved volumes in overseas markets particularly in Thailand and Indonesia, and export operations, as well as a price increase implemented in October last year.

The spirits business sustained its upward trajectory with revenues rising 14 percent to P23.1 billion while income from operations jumped 25 percent to P3.3 billion.

SMFB’s food division maintained its strong growth, recording a 16 percent hike in revenues to P84 billion as it managed to push its costs down by improving productivity and maximizing the use of its expansion facilities.

The animal nutrition and health and flour segments grew revenues, with both volumes and prices posting double-digit increases, while the prepared and packaged food business remained resilient.

Meawnwhile, SMFB’s poultry segment reported a three percent rise in consolidated operating income despite supply challenges due to erratic weather conditions, which constrained its ability to meet a surge in foodservice demand.

“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,” said Ramon S. Ang, SMFB president and CEO.