Improved 2020 revenues inspire SMFB optimism for 2021

MANILA, Philippines — San Miguel Food and Beverage Inc. (SMFB) has an optimistic outlook for 2021 as it posted improved figures for the second half of 2020, despite recording lower revenues on a year-on-year basis.

SMFB said that consolidated revenues went up by 27%, from P122.8 billion in the first half of 2020 to P156.5 billion in the second half of a year that was greatly disrupted by the COVID-19 pandemic.

Operating income also rose by 94%, from P11.4  billion to P22.0 billion.

However, consolidated revenues were said to have decreased by 10% compared to 2019; consolidated operating income was at P33.4 billion, and Ebitda (earnings before interest, tax, depreciation, and amortization) was at P46.8 billion.

The company’s net income was at P22.4 billion at the end of 2020.

According to Ramon Ang, SMFB president and chief executive officer, the turnaround is a testament to the company’s resiliency despite lockdowns that suspended work and transportation in several areas,

“While 2020 was extremely challenging, our businesses were able to pivot and deliver significant volume growth for the balance of the year. These encouraging results demonstrate the company’s resilience in the face of the global crisis and positions it for a strong and stable recovery,” Ang said.

Another reason for SMFB’s strong showing in the second half of 2020 was the easing of liquor bans nationwide. This bodes well for San Miguel Brewery Inc., which boasts of several alcoholic drinks like Ginebra San Miguel and San Miguel Beer on its roster.

“Profits for the period were driven by San Miguel Brewery Inc. (SMB) which posted volume growth in the second half following the lifting of liquor bans in various areas of the country,” SMFB said.

“SMB ended the year with consolidated revenues of P107.9 billion. The strong performance was backed by company-initiated consumption-generating programs, direct-to-consumer initiatives and cost containment efforts. EBITDA and net income amounted to P29.6 billion and P17.5 billion, respectively,” it added.

Furthermore, the removal of restrictions after the initial wave of the COVID-19 pandemic also allowed the company to export their products.  According to SMFB,

Ginebra San Miguel Inc. (GSMI) performed remarkably despite the pandemic, increasing sales by 8% to the tune of 38.6 million cases sold in 2020.

“We believe that the worst of the pandemic is over and we look forward to 2021 with optimism. We will continue to adapt to the changing market conditions and leverage on lessons learned,” Ang said.

“Soon, we will reemerge stronger and more resilient on the path to long-term profitable growth,” he added.

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