SMFB posts P122.8-B revenues, P7.34-B net income in H1; anticipates recovery

San Miguel Food and Beverage, Inc. (SMFB) reported a 50 percent drop in net income to P7.34 billion in the first semester of 2020 from P14.7 billion in the same period last year.

 In a statement, the firm said consolidated revenues was 19 percent lower at P122.82 billion for the first half of the year as the full impact of the COVID-19 pandemic weighed on its volume performance in the second quarter, especially for its Beer and Spirits divisions.

Consolidated EBITDA of P17.67 billion was P8.89 billion lower than last year, primarily driven by the Beer Division, which declined by P11.49 billion.

This was, however, partly offset by the positive performance of the Food and Spirits Divisions. Consolidated operating income reached P11.36 billion. 

The effect of the restrictions that accompanied the ECQ was most pronounced from mid-March to mid-May.

During the period, liquor bans were imposed across key cities, there were closures of food service and retail establishments, as well as limitations on movement and delivery of goods to the trade due to checkpoints.

To counter trade limitations, the Food Division implemented non-traditional selling channels as early as the start of the ECQ to address the surge in consumer demand and to ensure food availability at the doorsteps of customers.

These include the rollout of mobile stores, community reselling in barangays and villages, and the utilization of online ordering platforms and home deliveries.

As a result, San Miguel Foods (SMF) registered consolidated revenues of P65.18 billion in the first

semester, tracking the same levels as last year, and P5.74 billion in EBITDA, 67 percent higher year-on-year.

Consolidated operating income of SMF more than doubled to P2.24 billion versus the same period last year, while consolidated net income likewise more than doubled to P1.34 billion.

The Prepared and Packaged Food segment sustained its revenue growth of 17 percent, cushioning the impact of the ECQ on the Food division, as it benefitted from consumer stock piling and demand for essential packaged goods during the quarantine period. 

For the Beer Division, San Miguel Brewery, Inc.’s (SMB) consolidated revenues amounted to P42.79 billion, 39 percent lower than the same period last year on lower domestic volumes as a result of the liquor bans implemented in mid-March, which forced the closure of both on- and off-premise outlets.

Correspondingly, EBITDA amounted to P9.68 billion, 54 percent lower than last year, while net income stood at P5.03 billion.

On the other hand, Ginebra San Miguel Inc. (GSMI) reported that its consolidated revenues for the first half of 2020 amounted to P14.84 billion, slightly higher year-on-year.

EBITDA rose 17 percent to P2.30 billion while net income increased 28 percent to P1.26 billion. This signified a strong turnaround from the first quarter performance.

“As the pandemic continues to affect our everyday lives, we keep in mind that this is only temporary. We remain steadfast in our commitment to ensure food sufficiency and help and provide opportunities to the most vulnerable communities,” said Ramon S. Ang, President and Chief Executive Officer of SMFB. He added that, “We continue to build long-term resilience across SMFB. At the same time, we are mindful of the changes necessary to help us navigate through the crisis in the short-term. All told, we believe that SMFB is in a position to emerge stronger and better than it was before.”