Ramon S. Ang, San Miguel Food and Beverage president and CEO. (File photo by LEO M. SABANGAN II / Philippine Daily Inquirer)
MANILA, Philippines–The net income of consumer powerhouse San Miguel Food and Beverage Inc. grew last year by 8 percent to P30.5 billion, driven by a double-digit growth in revenues across all businesses.
Consolidated sales in 2018 rose by 14 percent to P286.4 billion as business units San Miguel Brewery Inc. (SMB), San Miguel Pure Foods (SMPF) and Ginebra San Miguel Inc. (GSMI) all posted double-digit growth in revenues.
Consolidated income from operations also grew by 8 percent to P46 billion, the company disclosed to the Philippine Stock Exchange.
SMB, for its part, reported a 14 percent growth in consolidated revenues last year to P129.2 billion, driven by higher consumption of leading brands Red Horse and San Miguel Pale Pilsen, along with effective marketing campaigns and defense programs which further strengthened the equity of its brands.
SMPF also delivered higher consolidated revenues of P132.3 billion, up 13 percent, through its portfolio of brands, including Magnolia, Purefoods, Tender Juicy, B‐MEG, Dari Creme, Star, and La Pacita. It posted higher volume growth of its protein, prepared and packaged food, and animal nutrition and health businesses. However, earnings were tempered by rising costs of major raw materials, start‐up costs from expansion projects, and the decline in poultry prices towards the end of the year.
Driven by flagship brand, Ginebra San Miguel. Its Chinese wine brand, Vino Kulafu, GSMI also posted healthy volume growth in the Visayas and Mindanao regions. It generated revenues of P24.8 billion, 19 percent higher than the prior year.
“Despite the high inflationary environment in the past year, we are pleased with the performance of our food and beverage businesses, which all delivered strong revenue growth. This is proof that our brands continue to resonate strongly with consumers,” said San Miguel Food and Beverage president and chief executive officer Ramon S. Ang.
“Moving forward, we will continue to invest in our businesses to meet the demands of growing consumption in the Philippines, and ensure that our quality products are always accessible to our consumers. We are confident that this will lead to more sustainable earnings growth and value,” said Ang. /jpv