San Miguel Food and Beverage Inc. (SMFB) reported Wednesday that its net income fell 4 percent to P22.1 billion in the first half of the year, down from P22.96 billion in the same period last year. The decline came as higher commodity prices, slower economic growth, and global supply chain issues reduced consumer spending and hurt some export markets.
Total revenues still managed a modest 2 percent rise to P205.3 billion from P201.2 billion a year earlier, driven mainly by stronger performance in its food business.
“Our business remained resilient through the first half of the year, supported by the strength of our operations and the hard work of our teams across the businesses,” said SMFB chairman Ramon S. Ang. “We are managing our costs carefully, adding capacity where demand is growing, and keeping our brands within reach.”
San Miguel Foods recorded a 5 percent increase in revenues to P99.3 billion from P94.37 billion, led by its feeds division and steady demand for popular brands such as Magnolia dairy and coffee, and Purefoods luncheon meats. Its operating income rose 2 percent to P8.8 billion, while net income went up 8 percent to P6.4 billion.
San Miguel Brewery Inc., the group’s biggest earnings contributor, saw revenues dip 1 percent to P73.7 billion from P74.58 billion as consumers cut back on non-essential spending amid high inflation and a weaker peso. Domestic beer sales held steady at P66 billion, after an earlier price hike helped offset higher excise taxes and softer sales volumes. International revenues fell to $128.5 million due to shipping delays linked to tensions in the Middle East. The brewery’s operating income dropped 11 percent to P14.4 billion, and net income fell 12 percent to P11.4 billion.
Ginebra San Miguel Inc. posted nearly flat revenues of P32.3 billion, as higher prices made up for lower sales volumes. Its operating income rose 8 percent to P5.4 billion, and net income increased 3 percent to P4.4 billion.
SMFB noted that consumer demand will likely stay under pressure in the coming months, but added that its leading brands and solid financial standing put it in a strong position to navigate challenges. The company said it will keep investing in production capacity, operations, and supply chains while maintaining strict cost controls to support long-term growth.
