Bilyonaryo - Business

San Miguel’s food and beverage unit anticipates strong second half amid falling raw material costs

June 7, 2023

Bilyonaryo.com

San Miguel Food and Beverage Inc. (SMFB) expects improved performance in the second half of the year as raw material prices decline.

Francisco Alejo III, SMFB’s chief operating officer for food, assured shareholders of a positive outlook, saying that the company anticipates “a better second half, and a good year for 2023.”

Alejo highlighted the decreasing prices of raw materials, particularly commodities, for the remaining months of the year.

He noted that current prices are already lower than in previous months and expects this trend to continue, resulting in significantly improved profitability for the company compared to the first half.

Despite facing challenges such as inflation, excise tax increases, and geopolitical uncertainties, SMFB reported an eight percent increase in consolidated net income to P9.9 billion in the first quarter.

Revenues also saw a 12 percent rise to P93.2 billion during the same period, driven by strong volume growth in key business segments.