The Philippines: San Miguel Food and Beverage sees beer business revenue dip 3% in Q1

San Miguel Food and Beverage Inc. (SMFB) on May 8 said its income rose 1.3 percent to P10 billion from the previous year’s P9.87 billion, the Business Mirror reported.

Consolidated revenues grew 2 percent to P95.4 billion compared to the previous year’s P93.18 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,” Ramon S. Ang, the company’s president and CEO, said.

The first quarter marked a positive start to the year for the food business, sustaining top-line growth and delivering strong profits, the company said.

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 by 78 percent to P2.7 billion from the previous year’s P1.53 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, among others. The coffee and dairy segments also delivered higher volumes, it said.

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.

Meanwhile, the spirits business under Ginebra San Miguel Inc. fell by 25 percent to P1.9 billion from the previous P2.53 billion.

Revenues of the beer business under San Miguel Brewery Inc. fell 3 percent to P37.4 billion from the previous year’s P38.33 billion, due to reduced volume.

The first quarter of 2023 saw a build-up in trade in anticipation of a price increase effective March 2023, the company said.

Its international beer business also reported a slight decline in volumes due to market mix changes. Global San Miguel brands continued to deliver strong volumes, growing 4 percent in the first quarter of the year.

Consolidated operating income for the beer business was down by 4 percent to P8.1 billion from the previous year’s P8.43 billion.

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