Ginebra San Miguel Inc., the liquor unit of San Miguel Food and Beverage Inc., reported a net income of P615.9 million in the first quarter of the year, up 141 percent from P255.4 million recorded in the same period last year, on double-digit growth in sales.
GSMI said in a filing with the Philippine Stock Exchange first-quarter revenues rose 28 percent to P8.26 billion from P6.44 billion a year ago.
Cost of sales likewise increased 24 percent to P6 billion from P4.87 billion, resulting in a first-quarter gross profit of P2.22 billion, up 42 from P4.87 billion in 2018.
After several years of losing ground to other brands, GSMI has managed to slowly recover on strong demand for its gin products in Luzon and the Vino Kulafu brand in Visayas and Mindanao.
The company managed to post a turnaround by focusing on strengthening its brand equity, improving distribution and implementing cost containment measures.
GSMI last year said it planned to build four new manufacturing facilities in the country to regain leadership in the domestic liquor market.
The liquor company is finalizing the details of the expansion, including the sites and capacity. The proposed plants are expected to be completed over the next two to three years.
Ginebra currently has liquor production facilities in Mandaue City, Cebu, Sta. Barbara, Pangasinan and Cabuyao, Laguna.
GSMI was previously a majority-owned direct subsidiary of San Miguel Corp. The parent firm consolidated last year the food and beverage business under SMFB to rationalize its businesses.
GSMI in 2018 booked a net income of P1.05 billion, up 75 percent from 2017, as revenues climbed 19 percent to P24.8 billion due to volume improvements of the flagship brand, coupled with sustained growth of other lines.