San Miguel consumer unit bucks price pressures

MANILA  -San Miguel Food and Beverage Inc. (SMFB) sold more beer, spirits and food products in the first quarter, allowing it to register growth in both revenues and net income.

The San Miguel Corp. unit, in a disclosure on Tuesday, reported that its net income rose by 8 percent to P9.9 billion for the period despite inflationary pressures.

Total top-line figure, supported by strong sales volume growth in key businesses, climbed by 12 percent to P93.2 billion in the first three months. Consolidated earnings before interest, tax, depreciation and amortization (Ebitda) were up 10 percent to P17.2 billion.

The listed company’s flagship beer business saw its sales grow by 29 percent to P38.3 billion in January to March. Net income for this segment picked up by 38 percent to P6.8 billion while Ebitda accelerated by 27 percent to P10.2 billion.

“Both its domestic and international operations posted positive sales performances with the easing of COVID-19 restrictions in markets where it operates,” SMFB said.

Domestic beer sales improved by 26 percent, which was attributed to new brand campaigns. International sales rose by 27 percent as the brewery sold more in Hong Kong, South China, Thailand and Vietnam.

As for its spirits business, revenue inched up 3 percent to P12.9 billion, resulting in net income rising by 73 percent to P3.5 billion in the first quarter. Ebitda for this segment was up 81 percent to P2.5 billion.

Its food business, meanwhile, registered P41.9 billion in revenues, showing 3-percent growth. SMFB explained that the demand for its products “remained steady” amid the further reopening of the economy.

“Despite the challenging environment, our brands remain top-of-mind of consumers and we intend to sustain this momentum by investing further in brand-building efforts and innovation to further drive growth,” SMFB president and CEO Ramon S. Ang said.

—Tyrone Jasper C. Piad INQ