San Miguel spirits, food and beverage units maintain profit growth

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SAN MIGUEL Corp.’s food and beverage unit as well as its spirits business sustained their profit growth in the third quarter despite higher costs and the weakening peso.

From January to September, San Miguel Food and Beverage, Inc. (SMFB) reported a 9% rise in consolidated net income to P26.3 billion.

“Our solid performance and strong fundamentals today are a reflection of the investments we made over the years, as well as our focus on execution to drive growth and profitability,” SMFB President and Chief Executive Officer Ramon S. Ang said in a press release on Wednesday.

Consolidated revenues climbed by 18% to P261.5 billion, which the company attributed to volume growth across its beer, spirits, and food division.

“Price increases were implemented across the various product portfolios to offset challenges posed by higher raw materials costs and a weaker peso,” the company said in a disclosure.

Revenues from SMFB’s beer business increased by 21% to P99 billion on higher volumes and price increases.

Meanwhile, its food business posted P128 billion in consolidated revenues, up by 18% versus last year.

Meanwhile, San Miguel’s spirits business, Ginebra San Miguel, Inc. (GSMI), registered a P3.4-billion net income for the nine-month period, up by 7% from the previous year.

GSMI’s revenues totaled P34.5 billion in the three quarters, 12% higher than last year, after booking an 8% increase in volumes.

In its disclosure, GSMI said that the increase in volume was driven by on-ground selling efforts and marketing programs of brands such as Ginebra San Miguel, GSM Blue, and Vino Kulafu.

GSMI’s operating income rose by 12% to P4.6 billion.

“We’re optimistic that the programs that our GSMI team has put in place to preserve and strengthen their market leadership will continue to carry the business through difficult times,” Mr. Ang said.

“We look forward to its continued solid performance — particularly this last quarter, which is usually a strong quarter for most businesses owing to the holidays,” he added.

On Wednesday, shares in SMFB climbed by 20 centavos to P35.20 apiece, while GSMI shares added 90 centavos to P106.90 each. — Justine Irish D. Tabile