MANILA, Philippines — Consumer giant San Miguel Food and Beverage Inc. posted a 1-percent growth in first quarter net profit to P7.4 billion on higher volumes delivered by the beer, liquor and food businesses.
Consolidated revenues rose by 14 percent year-on-year in the first quarter to P75.7 billion, led by the beer and hard liquor businesses which respectively grew by 18 percent and 24 percent.
The food business also grew by 4 percent.
Consolidated income from operations, however, fell by 1 percent year-on-year to P10.8 billion. The continuing chicken oversupply and the higher raw material costs for some of the products in the food segment led to a decline in margins.
Consolidated operating income margin softened to 14 percent from last year’s 17 percent.
“We are encouraged by the strong sales volume growth delivered by our businesses in the first quarter. Despite certain cost pressures, we remain optimistic that we are capable of sustaining overall momentum moving forward and will continue to invest in areas that we believe will provide SMFB with sustainable and profitable growth,” said SMFB president Ramon S. Ang.
The beer business continued to deliver double-digit growth both in volume and revenues. Revenues rose by 17 percent year-on-year to P34.8 billion, on the back of strong nationwide consumption of its leading brands, Red Horse and San Miguel Pale Pilsen.