San Miguel Food and Beverage, Inc. (SMFB) reported a 68 percent jump in consolidated net income to P24.2 billion in the first nine months of the year “following solid strategic pivots that allowed it to address the challenges of the COVID-19 pandemic on its businesses.”
In a disclosure to the Philippine Stock Exchange, the firm said consolidated revenues increased 14 percent to P221.7 billion from the same period last year with all its businesses registering double-digit sales growth.
Consolidated EBITDA during the period rose 37 percent to P41.7 billion while consolidated operating income increased by 60 percent to P32.8 billion.
“This is due to double-digit increases in sales across all businesses, as well as continued cost-containment efforts and operational efficiencies,” SMFB said.
The firm said the growth performance of its Food business remains strong with revenues for the period reaching P108.9 billion, 13 percenthigher than the same period last year and 8 percent better than 2019 pre-pandemic revenues.
Its Protein segment delivered a 20 percent growth in revenues during the period as it continued to tap into existing channels while benefitting from increased sales to community-based outlets while protecting gains in pricing.
Revenues of its Animal Nutrition and Health segment, likewise, posted growth driven by higher volumes and supported by its new feed mills.
The company’s Prepared and Packaged Food and Flour segments, meanwhile, continued to reflect positive performance despite higher material costs, as sales was buoyed both by home consumption and recovery in existing customers’ operations.
The Food business’ consolidated EBITDA jumped 84 percent to P14.9 billion, while operating income increased four-fold to P10.6 billion.
SMFB’s Beer business posted consolidated year-to-date revenue of P82.1 billion, 13 percent higher compared to last year, amid the reimposition of an Enhanced Community Quarantine (ECQ) and liquor bans in NCR and several key provinces in August, coupled with various COVID-19 restrictions implemented in our international markets.
It also continues to implement cost management initiatives, resulting in a 23 percent increase in operating income to P18.2 billion. Net income rose 27 percent to P14.0 billion during the period.
Meanwhile, its Spirits business continued to see strong momentum as it reported a double-digit increase in volumes. As a result, revenues were up 21 percent to P30.7 billion while its net income jumped 43 percent to P3.2 billion.
“Our results highlight the strength and breadth of our food and beverage portfolio. While there are still impacts from the pandemic, we are hopeful that the worst is behind us and we are on the path to a new, better normal,” said SMFB President and CEO Ramon S. Ang.
He added that, “With our balance sheet in a strong position, we remain focused on further strengthening our momentum and continue to invest in areas that we believe will be critical to reaching our longer-term goal of delivering shareholder value while making sure that we do our part in supporting communities that need our help the most.”