SMB earnings improve to P21.8 B

San Miguel Brewery, Inc. (SMB) delivered strong financial results in 2022 with consolidated net income improving 6.4 percent to P21.8 billion from 2021.
In a statement, the firm said earnings growth was driven mainly by its greater focus on consumer needs through innovation, consumer engagement programs and increased marketing support in relevant channels backed by a favorable market environment.
Sales revenue grew 17.2 percent to P136.2 billion last year while operating income hiked 9.7 percent to P29.5 billion, resulting in a 21.7 percent operating margin.
This was attributed to significant volume growth, favorable brand mix, and implementation of cost efficiency initiatives, boosting its domestic and overseas volumes and profit.
To further boost consumer demand in the local market, SMB rolled out the San Mig Flavored Water in March, an unsweetened non-carbonated drink, and San Mig Hard Seltzer made from sparkling water with a 5 percent alcohol content.
Last December, SMB launched its newest product, San Miguel Cerveza Blanca, a wheat beer positioned in the upscale market.
SMB also implemented packaging innovations with the release of the San Mig Light Limited Edition cans in July, the San Miguel Flavored Beer Hallyu Fun cans in September, and the San Miguel Pale Pilsen Play cans in October.
San Miguel’s international operations likewise posted robust growth propelled by higher volumes, better operational efficiencies and prudent cost management.
Leveraging on the broader portfolio of the Company’s specialty beers, Indonesia continued its volume growth and profit uptrend, while Thailand capitalized on the strength of SMB’s specialty beers and premium brands resulting in increasing sales.
Meanwhile, SMBIL’s Exports operations posted its third consecutive year of higher volume and profit, particularly in markets like UAE, Qatar, USA, Bahrain as well as in new markets in Asia and Africa.