SMFB earnings flat as beer sales fall
MANILA, Philippines —The first-quarter earnings of billionaire Ramon S. Ang-led San Miguel Food and Beverage Inc. (SMFB) were flat at P10 billion due to lower revenues from the beer business despite growth in the food segment.
In a stock exchange filing on Wednesday, SMFB said this represented a 1-percent increase from the year-ago level. Meanwhile, revenues grew by 2 percent to P95.4 billion.
“We remain committed to leveraging our strengths to address the challenges and continue delivering exceptional value to our stakeholders,” SMFB president and CEO Ang said.
Operating income jumped by 13 percent to P13.1 billion due to increased sales in the food and spirits segments.
According to SMFB, the food business recorded a 78-percent surge in operating income to P2.7 billion on higher gross profits as prices of raw materials eased.
Food, spirits businesses up
The top line of the processed meats segment rose by 10 percent as sales of Tender Juicy hotdogs, Purefoods luncheon meat, and corned beef grew.
READ: SMFB profit up 10% to P38.1B in 2023
Despite low chicken prices due to the influx of imported poultry, volume gains in the segment helped maintain revenues. SMFB did not provide the figures for these businesses and it has yet to disclose its quarterly report.
The spirits business, meanwhile, saw a 17-percent growth in revenues to P15.1 billion due to “supply chain improvements” that helped lift volumes.
The beer business did not see the same growth, with consolidated revenues dropping by 3 percent to P37.4 billion on the back of reduced volume.
