San Miguel Food and Beverage, Inc. reported a 30 percent drop in consolidated profits last year to P22.4 billion from P32.3 billion in 2019 but noted a rebound starting the second half of 2020.
In a statement, SMFB said consolidated revenues were down 10 percent to P279.3 billion in 2020 while consolidated operating income ended at P33.4 billion as consolidated EBITDA amounted to P46.8 billion.
“Following a strong rebound in the second half of 2020, SMFB is back on track to deliver profitable growth moving forward,” the firm said.
Second half consolidated revenues were up 27 percent to P156.5 billion from P122.8 billion in the first half while consolidated operating income jumped 94 percent to P22.0 billion from P11.4 billion in the first semester.
“While 2020 was extremely challenging, our businesses were able to pivot and deliver significant volume growth for the balance of the year,” SMFB President and CEO Ramon S. Ang said.
He added that, “These encouraging results demonstrate the company’s resilience in the face of the global crisis and positions it for a strong and stable recovery.”
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.
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.
SMB’s international operations also benefitted from easing of restrictions in the second half of the year. Its Hong Kong, South China, Vietnam, and Export markets delivered profits significantly better than 2019.
Ginebra San Miguel Inc. (GSMI) continued its remarkable performance amidst the pandemic, delivering volumes of 38.6 million cases, 8 percent higher than the prior year.
Consolidated revenues for 2020 amounted to P36.2 billion, while EBITDA totaled P5.0 billion, up 25 percent and 38 percent, respectively. GSMI’s net income hit P2.8 billion, up 65 percent from the prior year and the highest level ever registered by the company.
Meanwhile, San Miguel Foods (SMF) responded nimbly to the spike in home consumption and the shift to home-based lifestyles throughout the lockdown, ensuring product availability and accessibility.
Its prepared and packaged food segment benefitted most from the shift delivering a solid double-digit performance in 2020.
This segment also helped mitigate the effects of the softening of certain segments, particularly the Protein business, as operations of most of its food service customers were affected by community quarantine restrictions.
SMF ended the year with consolidated revenues of P135.2 billion, slightly lower than the previous year. EBITDA was 8 percent higher year-on-year at P12.2 billion.“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. Soon, we will reemerge stronger and more resilient on the path to long-term profitable growth,” said Ang.
