San Miguel Food and Beverage Inc. said Wednesday it posted its highest revenue in a single quarter since its consolidation in 2018 despite a challenging global macroeconomic environment.
Consolidated revenues rose 18 percent in the first nine months to P261.5 billion because of underlying volume growth across beer, spirits and food divisions, the company said.
Price increases were implemented across the various product portfolios to offset challenges posed by higher raw materials costs and a weaker peso, it said
Consolidated earnings before interest, taxes, depreciation and appreciation and consolidated income from operations increased 12 percent and 15 percent to P46.7 billion and P37.6 billion, respectively.
Consolidated net income also rose 9 percent from the same period last year to P26.3 billion.
SMFB’s Beer business reported consolidated revenues of P99 billion, up 21 percent from last year on higher volumes and a price increase implemented in the latter part of 2021.
Its beer volumes also continue to recover strongly following the lifting of lockdown restrictions and the reopening of the economy resulting from the surge in COVID-19 Omicron variant in January. The business has also been implementing various programs in key channels to further spur demand and maximize volumes.
The beer’s international operations registered double-digit volume improvements, particularly in its Thailand and Indonesia operations, in line with the easing of COVID-19 restrictions.
The beer business generated EBITDA of P26.4 billion, or 19 percent higher than the same period last year, while income from operations increased 22 percent to P22.2 billion.
SMFB’s spirits business continued to be the leading spirits maker in the country, with revenues growing 12 percent year-on-year to P34.5 billion, driven by positive volume growth and a modest price increase earlier in the year. Income from operations rose 12 percent to P4.6 billion.
SMFB’s food business also sustained its growth, posting consolidated revenues of P128 billion, an 18 percent increase over the prior year.
Almost all food businesses delivered double-digit growth, including its prepared and packaged food segment. Consolidated EBITDA for the food business amounted to P 15.4 billion, three percent higher year-on-year.
“Our solid performance and strong fundamentals today are a reflection of the investments we made over the years, as well as our focus on execution to drive growth and profitability,” said SMFB president and chief executive Ramon Ang.
“We continue to implement performance improvement measures and prudently invest in projects that will further solidify our market-leading positions in the markets we operate. We remain fully committed to building long-term value for all our shareholders, as well as delivering quality products for the everyday needs of the consumers,” said Ang.