Ginebra income up 7% despite inflation surge

Ginebra San Miguel Inc., the world’s largest gin producer, saw higher profits in the January to September period despite spiraling raw material prices.

Net income rose 7 percent to P3.4 billion while revenues climbed 12 percent to P34.5 billion, which the company attributed to an 8-percent increase in volumes.

“The business felt the full impact of the global effects of the war between Russia and Ukraine and the weakening of the peso versus the US dollar in the third quarter, which brought the costs of fuel, alcohol and other material inputs up,” Ginebra said in a stock exchange filing on Wednesday.

“Still, volumes remained high, pushed by determined on-ground selling efforts and effective marketing programs for its flagship gin, Ginebra San Miguel, and other major brands, including GSM Blue and Vino Kulafu,” it added.

The hard liquor producer, owned by conglomerate San Miguel Corp. (SMC), said earnings were lifted by cost-cutting measures, boosting operating profits by 12 percent to P4.6 billion.

“It has been a particularly challenging period, with the conflict in Ukraine continuing to have wide-ranging impacts on economies, companies, suppliers, workers and employees alike. Fortunately, [Ginebra] has been able to adapt to changing conditions, especially on the ground, as it continues to work to reach and serve its target markets,” SMC president Ramon S. Ang said in a statement.

“[We] look forward to its continued solid performance—particularly this last quarter, which is usually a strong quarter for most businesses owing to the holidays,” he added.