While grappling with rising raw material costs in all divisions, San Miguel Food and Beverage Inc. expects its beer and spirits businesses to continue to recover as the economy reopens.

“We are almost half-way through 2022 and many macro uncertainties have emerged including accelerating inflation SMFB Vice Chairman, President and CEO Ramon S. Ang said during the firm’s annual stockholders’ meeting.

He added that, “Across our businesses, we have implemented cost and pricing initiatives to successfully counter these challenges so that we are in a better position to deliver value for all of our stakeholders.”

“Our food business is able to minimize the impact of rising raw material prices through pricing, we use alternative raw materials, we drove operational efficiency and the full use of company owned facilities,” said SMFB Chief Operating Officer for Food Francisco S. Alejo III.

He noted that, “As part of SMFB, we are able to leverage on the synergy within the group, such as Logistics and Distribution.”

Meanwhile, SMFB COO for Beer Roberto N. Huang said “the beer business is now improving continuously because of the lifting of the liquor ban and the easing of restrictions.”

“It may not be easy to say as to when we can reach the pre-pandemic level, as far as the volume is concerned. But, as far as the profit is concerned, I believe we can deliver the pre-pandemic level in less than five years’ time,” he said.

For Ginebra San Miguel, SMFB Chief Operating Officer for Spirits Emmanuel B. Macalalag said that, “looking at the first quarter performance, the net income of GSMI was 34 percent higher than last year. And, looking at the year to date, volumes are still growing versus last year.”

“I think the marketing campaigns that we have put out are proving to be effective. We are still aggressive with the selling. So, against this backdrop, I am certain and confident that it will be another good year for GSMI,” he noted.

Ang said “We remain optimistic about our ability to deliver growth moving forward. We are confident that the strategic pivots we’ve made in the last couple of years will keep us on solid footing.”

“We are fortunate that our financial strength enables us to continue pursuing expansion projects that will enable us to further capitalize on the country’s continued recovery. We are confident that, once the dark clouds of the pandemic finally lift, we will emerge as an even stronger and more resilient company with the strength to help serve the needs of our country,” he stressed.