San Miguel Food and Beverage, Inc. (SMFB) reported that its first half consolidated net income rose 137 percent to P17.36 billion, surpassing pre-pandemic profits in the first half of 2019.

In a disclosure to the Philippine Stock Exchange, the firm said this was driven by stronger operating performance across all divisions and reflecting its ability to adapt to the challenges of the COVID-19 pandemic.

SMFB recorded consolidated revenues of P146.79 billion, up 20 percent from the same period last year. EBITDA was at P29.28 billion, up 66 percent from the same period in 2020, representing margins of over 20 percent.

Operating income, meanwhile, more than doubled to P23.04 billion, driven by improvements in volumes and selling prices across the divisions, as well as continued group-wide cost-containment efforts and operational efficiencies.

“Our performance in the first half reflects the agility and adaptability of our food and beverage businesses, in the face of unprecedented challenges brought about by COVID-19,” said SMFB President and CEO Ramon S. Ang.

He added that, “As the situation continues to evolve, the flexibility and resilience we developed this past year will enable us to move forward and pivot quickly as needed.”

The Food Group reported that consolidated revenues improved 11 percent to P72.24 billion in the first half of 2021, primarily driven by its Protein and Animal Nutrition businesses, which posted double-digit volume growth.

Protein revenues climbed 20 percentduring the period due to strong demand for poultry products through retail channels, including community resellers, and the recovery of foodservice accounts. The segment also benefitted from stable poultry supply and favorable prices.

Finally, core products within the Prepared and Packaged Food and Flour portfolio posted good volumes as they continued to be top-of-mind, essential items for consumers nationwide.

The Food group’s consolidated EBITDA doubled to P11.44 billion, while operating income increased more than three-fold to P8.36 billion on higher gross profit and lower selling, general, and administrative expenses.

The Beer business registered a rebound as consolidated sales volumes improved 15 percent versus last year, with the easing of quarantine restrictions and lifting of liquor bans in its markets.

This resulted in consolidated revenues of P54.33 billion for the first half of the year, up 27 percent from the same period in 2020.

Coupled with cost reduction initiatives, consolidated operating income of the Beer business grew 64 percent to reach P12.08 billion. EBITDA amounted to P14.75 billion, up 52 percent, while net income rose 89 percent to P9.51 billion in the first half of the year.

The Spirits business continued its strong performance in the first semester as volumes increased 21 percent year-on-year to generated revenues of P20.23 billion, 36 percent higher than the previous year.

Income from operations rose 45% to P2.61 billion. EBITDA increased 35 percent to P3.10 billion, while its net income jumped 66 percent to P 2.09 billion.

“Moving forward, we will continue to invest in areas that will boost our recovery, maximize shareholder value, while fulfilling the needs of our consumers, communities, and the country,” said Ang.