San Miguel net profit steady at P22.92B

Consumer conglomerate San Miguel Food and Beverage, Inc. (SMFB) chalked up P22.92 billion in net profit in the first nine months of 2019, flat from the level in the same period in 2018, partly due to a glut in the poultry industry.

Consolidated revenues of P226.36 billion went up by 10 percent over the same period last year amid steady volume expansion across key products, SMFB disclosed to the Philippine Stock Exchange. However, SMFC said the poultry business faced declining prices that hurt bottomline.

Consolidated operating income for the nine-month period remained steady at P33.58 billion. Total food revenues for the nine-month period still increased by 6 percent year-on-year to P101.05 billion. Strong consumer demand continued to buoy its prepared and packaged food segment, which grew by 13 percent, driven by processed meats, dairy, and spreads.

The beer business also continued to drive the company’s results, contributing nine-month revenues of P103.88 billion, up by 11 percent from the same period last year. This was backed by a 9 percent domestic volume growth. Despite what is typically a seasonally weak third quarter, sales and marketing campaigns enabled domestic volumes to grow.

As poultry supply stabilized in the third quarter, consolidated operating income recovered by 8 percent. /TSB