Ginebra San Miguel Inc., the liquor subsidiary of conglomerate San Miguel Corp., said Thursday it plans to build three new facilities as sales remain strong despite the pandemic.
GSMI president Ramon Ang said during the annual stockholders’ meeting plans were underway for the construction of three plants in Ilocos Region, Bicol Region and Pagadian City.
Ang did not provide more details on the new facilities including capital spending, production capacity and timetable for the completion.
Aside from new manufacturing facilities, GSMI would also invest in logistics to improve its capability and expand its reach, according to Ang.
The liquor firm operates five bottling facilities in Cabuyao, Laguna; Sta. Barbara, Pangasinan; Cauayan City, Isabela; Ligao City, Albay; and Mandaue City, Cebu.
GSMI posted a 120-percent increase in net income in the first quarter to P1.04 billion from P474 million in the same period last year. Operating income increased by 88 percent to P1.3 billion.
GSMI said the first-quarter performance was driven by programs to sustain the brand equity of core brands Ginebra San Miguel and Vino Kulafu and further increase awareness on GSM Blue.
“Our continuous efforts to invest in strengthening Ginebra San Miguel’s brand equity and build a deeper connection with consumers carried us through these uncertain times,” Ang said.
Despite the lockdown in 2020 and imposition of liquor bans, GSMI managed to delivery strong results with full-year net income increasing by 65 percent to a record P2.76 billion.
Consolidated revenues in 2020 also reached P36.2 billion, an increase of 25 percent from 2019 while operating income rose 32 percent to P3.8 billion.
“Complementing our strategy of leveraging on the strength of our brands, was a well-coordinated, quick return-to-trade strategy, upon the easing of ECQ and implementation of general community quarantine. We also made our products more accessible to more consumers, with deliberate efforts to expand our distribution coverage in high-potential areas, even as restriction measures varied across the country,” Ang said.