SMFB posts double-digit growth on robust consumer spending

Consumer giant San Miguel Food and Beverage Inc. (SMFB) saw profits in 2022 increase 10 percent to P34.7 billion on strong volume growth and higher selling prices.

The maker of San Miguel beer and Purefoods meat products said in a stock exchange filing on Wednesday that revenues during the year had also expanded by 16 percent to nearly P359 billion. This was driven by higher volume growth across its beer, spirits and food divisions.

“SMFB’s results prove the resilience of our business model as we navigated a very difficult environment in 2022,” SMFB president and CEO Ramon Ang said in a statement.

The company’s consolidated income from operations grew 11 percent to P48.7 billion. Total earnings before interest, taxes, depreciation and amortization (Ebitda) rose 12 percent to P62.7 billion.

“Looking to 2023, we expect to continue to deliver operational excellence and invest in growth to drive long-term value for our shareholders. At the same time, we will continue to ensure that our products are within reach of every Filipino,” Ang said.

SMFB’s beer division saw revenues climb 17 percent to P136.2 billion.

“Domestic operations saw volumes grow amid a favorable market environment, continued easing of COVID- 19 restrictions, a buoyant economy and robust consumer spending,” the company said.

International operations also sustained strong volume growth from exports, as well as Indonesia and Thailand operations.

Ebitda for the beer segment and income from operations increased 10 percent to P36 billion and P29.5 billion, respectively.

The spirits business posted an 11-percent growth in sales to P47.3 billion amid higher volumes and selling prices. Ebitda increased 7 percent to P6.7 billion, while income from operations rose 13 percent to P6 billion, the company said.

“The spirits business continues to invest in strengthening brand equity and expanding distribution reach to further its market presence,” SMFB said.

Moreover, the company’s food segment saw consolidated revenues increase 16 percent to P175.3 billion.

Total ebitda rose 18 percent to P20.1 billion while income from operations added 15 percent to P13.3 billion.

Food business was driven by flour, feeds, and prepared and packaged foods.

“Amid rising inflation, volumes in most segments grew, boosted by intensified distribution, aggressive promotional activities, launch of new products and utilization of additional capacity from new facilities,” the company said.  INQ