SMFB posts P14.7 billion H1 profit
Published Aug 7, 2019 12:00 am
By James A. Loyola
San Miguel Food and Beverage, Inc. (SMFB), a subsidiary of diversified conglomerate San Miguel Corporation, reported a 5 percent decline in consolidated net income to P14.7 billion in the first half of the year.
In a disclosure to the Philippine Stock Exchange, the firm said it registered consolidated revenues of P151 billion for the first half of 2019, up 10 percent from last year, driven mainly by healthy volume expansion across key products of the consumer giant.
SMFB said though that cost and pricing pressures from the food group weighed on margins resulting in a 6 percent drop in consolidated operating income to P21.6 billion.
The company’s poultry segment, in particular, reeled from an industry-wide oversupply that began late last year. But with current prices showing signs of recovery, the group is confident it will get out of the slump sooner than expected.
“Despite challenges impacting some of our businesses, we remain positive about the company’s overall growth prospects given our unique position to capture the opportunities directly linked to our fast-growing economy,” SMFB President and CEO Ramon S. Ang said.
SMFB’s beer business continued to deliver strong revenue and volume growth, coming from its domestic operations. Revenues for the period rose 12 percent to P70.3 billion amid strong nationwide consumption of its leading brands.
On the other hand, the firm’s spirits and liquor business Ginebra San Miguel exceeded expectations, growing its revenues by 20 percent to P14.7 billion in the first semester.
Meanwhile, the food group continued to benefit from higher volumes from a strong portfolio of brands. As a result, revenues increased by over 5 percent over P66.1 billion for the period.
To ease pressure on margins, the group has been focusing on growing its value-added business, resulting in double-digit growth for its prepared and packaged food segment, as well as topline growth across its processed meats, dairy, and spreads businesses.
It has also been investing in additional facilities for feeds, flour, prepared and packaged food, and poultry and fresh meats to meet the demands of a fast-growing consumer market.
In a disclosure to the Philippine Stock Exchange, the firm said it registered consolidated revenues of P151 billion for the first half of 2019, up 10 percent from last year, driven mainly by healthy volume expansion across key products of the consumer giant.
SMFB said though that cost and pricing pressures from the food group weighed on margins resulting in a 6 percent drop in consolidated operating income to P21.6 billion.
The company’s poultry segment, in particular, reeled from an industry-wide oversupply that began late last year. But with current prices showing signs of recovery, the group is confident it will get out of the slump sooner than expected.
“Despite challenges impacting some of our businesses, we remain positive about the company’s overall growth prospects given our unique position to capture the opportunities directly linked to our fast-growing economy,” SMFB President and CEO Ramon S. Ang said.
SMFB’s beer business continued to deliver strong revenue and volume growth, coming from its domestic operations. Revenues for the period rose 12 percent to P70.3 billion amid strong nationwide consumption of its leading brands.
On the other hand, the firm’s spirits and liquor business Ginebra San Miguel exceeded expectations, growing its revenues by 20 percent to P14.7 billion in the first semester.
Meanwhile, the food group continued to benefit from higher volumes from a strong portfolio of brands. As a result, revenues increased by over 5 percent over P66.1 billion for the period.
To ease pressure on margins, the group has been focusing on growing its value-added business, resulting in double-digit growth for its prepared and packaged food segment, as well as topline growth across its processed meats, dairy, and spreads businesses.
It has also been investing in additional facilities for feeds, flour, prepared and packaged food, and poultry and fresh meats to meet the demands of a fast-growing consumer market.