SMC foods, beverage unit posts 4% earnings increase

LISTED San Miguel Food and Beverage Inc. (SMFB) posted a 4% increase in its nine-month consolidated net income to P27.5 billion due to stronger sales.

SMFB said in a regulatory filing on Wednesday that its consolidated revenues rose 6% to P276.7 billion as it “continued to overcome economic challenges in the first nine months of the year.”

The San Miguel Corp. (smc) unit’s earnings before interest, taxes, depreciation, and amortization (EBITDA) also expanded by 4% to P48.3 billion.

“Despite the constantly evolving market conditions, we remain committed to delivering sustained growth and value to all our stakeholders. Our confidence is rooted in the strength of our product portfolio and operational capabilities,” SMFB President and Chief Executive Officer Ramon S. Ang said.

“More importantly, SMFB’s commitment to contributing to the nation’s food security remains as strong as ever, reflecting our dedication to playing a key role in our country’s growth and development,” Mr. Ang added.

According to SMFB, its beer business logged a 9% growth in consolidated sales to P108.3 billion, carried by stronger demand in both domestic and overseas markets.

Domestic sales increased 9% to P96.3 billion, while international operations generated a 9% revenue growth, led by exports, Hong Kong, and South China markets.

The consolidated EBITDA of SMFB’s beer business rose 12% to P29.4 billion, while its consolidated net income jumped 20% to P19.4 billion.

Meanwhile, SMFB’s spirits business maintained its track record of another high sales volume with a 13% revenue increase to P38.9 billion “as a result of strategic pricing and effective promotions, among others.”

The EBITDA of the spirits business grew 48% to P7.4 billion, while its net income had a 62% increase to P5.5 billion.

SMFB also reported that its food business held steady amid inflationary pressures with a P129.4 billion revenue.

“The company’s outlook remains positive with anticipated cost benefits from declining raw material prices,” SMFB said.

Shares of SMFB fell five centavos or 0.10% to P50.75 apiece on Wednesday. — Revin Mikhael D. Ochave