San Miguel Food and Beverage Inc. (SMFB), the combined food, liquor and beer business of conglomerate San Miguel Corp., on Thursday reported six-month earnings barely moving at P18.8 billion from last year’s P18.75 billion.
The company said the performance was due to an increasingly challenging environment marked by the rising cost of raw materials, an increase in excise taxes, as well as elevated logistics costs.
“As uncertainties and risks to the economic environment remain, we will continue to take the necessary action to mitigate the impact on each of our businesses, including leveraging on each of our strengths to improve overall performance,” Ramon S. Ang, San Miguel president and CEO, said.
“We will continue to invest in building our brands and strengthening our portfolio in order to position SMFB for long-term sustainable growth,” Ang said.
In the first six months of the year, consolidated revenue rose 7 percent to P184.6 billion from the last year’s P172.12 billion, driven by a combination of volume growth and efficient pricing strategy.
Its food business reported sales revenue of P85.1 billion, a 1 percent rise from last year’s P83.99 billion amid headwinds from higher raw material costs.
Ginebra San Miguel Inc., the spirits unit, said its income for the period reached P4.1 billion, 64 percent higher than last year’s P2.48 billion.
Ginebra said volume reached 22.2 million cases, a 1 percent improvement over the same period last year.
Sales revenues rose 10 percent to P25.4 billion from the previous year’s P23.14 billion, while
income from operations went up 3 percent to P3.4 billion from the previous year’s P3.27 billion.
Its brewery unit, San Miguel Brewery Inc, reported consolidated net income rising 26 percent in the first half to P13.5 billion from the previous year’s P10.65 billion.
Sales grew 14 percent to P74.1 billion compared to P65 billion in the same period last year.
