Consumer powerhouse San Miguel Foods and Beverage Inc. (SMFB) grew its net income by 40 percent to P31.4 billion last year, moving closer to earnings level seen before the COVID-19 pandemic wreaked havoc on the economy.
This earnings level included those attributable to minority equity holders of parent firm. Last year’s level accounted for about 97 percent of the P32.28 billion earnings level seen in 2019 as the food business achieved record revenues.
“We remain optimistic about our ability to deliver growth moving forward. While we expect to contend with the increase in certain raw material costs due to macro events, we are confident that the strategic pivots we’ve made in the last couple of years will keep us on solid footing. We are fortunate that our financial strength enables us to continue pursuing expansion projects that will enable us to further capitalize on the country’s continued recovery,” SMFB president and CEO Ramon Ang said in a press statement on Wednesday.
Consolidated revenues last year grew by 11 percent to P309.8 billion, driven by higher sales volumes, market share gains and better pricing across various businesses.
Cash flow as measured by earnings before interest, taxes, depreciation and amortization rose by 20 percent to P56.2 billion. Consolidated operating income increased by 31 percent, which the company credited to improved productivity, distribution efficiencies and cost containment initiatives. As a result, operating margins widened by 100 basis points for the year.
SMFB’s food business posted record consolidated revenues of P151 billion, up by 12 percent over the prior year and 8 percent better than 2019, with each segment delivering strong results and increased earnings.
The meat or protein segment posted double-digit growth, driving revenues of the food business, attributed to better pricing of poultry products and efficient inventory management.
The ready-to-eat and packaged food segment also sustained growth, with higher contributions reported from Tender Juicy hotdogs and Purefoods chicken nuggets, complemented by growing sales from new products, including meat-free line Veega, Purefoods spaghetti sauce and seafood nuggets.