San Miguel Food and Beverage Inc. (SMFB) said Wednesday it posted strong financial results in the first quarter of 2024, with consolidated operating income climbing 13 percent to P13.1 billion, fueled by increased sales in its food and spirits divisions.
Consolidated revenues grew 2 percent to P95.4 billion from the previous year, while net income rose 1 percent to P10 billion.
“Our solid performance in the first quarter demonstrates our strategic resilience and ability to adapt in a complex market landscape. We remain committed to leveraging our strengths to address challenges and continue delivering exceptional value to our stakeholders,” said SMFB president and chief executive Ramon Ang.
The first quarter marked a positive start to the year for the food business, sustaining top-line growth and delivering strong profits.
Consolidated sales for the period reached P43 billion, up 2 percent from last year, driven by higher volumes across most segments. The food business’s operating income surged 78 percent to P2.7 billion, buoyed by higher gross profits as key raw material prices eased and efficiencies at company-owned facilities improved.
The processed meats, dairy and coffee segments were key drivers of top-line growth during the period. Processed meats revenue rose 10 percent, supported by strong sales of Tender Juicy hotdogs, Purefoods luncheon meat and corned beef. Similarly, the coffee and dairy segments also delivered higher volumes.
Meanwhile, the poultry and animal nutrition and health businesses maintained revenue levels from last year due to stable chicken supply.
Volume gains in poultry and strong performance from free-range fowl feeds offset the adverse impact of low chicken prices, which resulted from an influx of imported chicken and the lingering effects of African Swine Fever on hog feeds.
