San Miguel Food and Beverage, Inc. (SMFB) delivered robust financial results for the full year ended December 31, 2021, demonstrating resilience in the face of challenges brought about by the ongoing pandemic.
Consolidated revenues grew 11% compared to the prior year to P309.8 billion propelled by higher volumes, market share gains, and better pricing across SMFB’s businesses.
Consolidated EBITDA rose 20% to P56.2 billion, while consolidated operating income jumped 31%, as a result of productivity improvements, distribution efficiencies, and cost containment initiatives. As a result, operating margins widened 100 basis points for the year.
Consolidated net income jumped 40% to P31.4 billion, inching forward to 2019 pre-pandemic level.
SMFB’s Food business posted record consolidated revenues of P151.0 billion, a 12% increase over the prior year and 8% better than 2019, with each segment delivering strong results and increased earnings.
The Protein segment posted double-digit growth driving the Food business’ revenues, and bolstered by better pricing of its poultry products and efficient inventory management.
The Prepared and Packaged Food segment also posted continued growth, with higher contributions from Tender Juicy hotdogs and Purefoods chicken nuggets, complemented by growing sales from new products, including meat-free line Veega, Purefoods spaghetti sauce, and seafood nuggets.
The company’s Animal Nutrition and Health and Flour segments also continued its strong momentum into 2021 as it benefitted from various campaigns, expansion of distribution networks, and the reopening of customers’ businesses and repopulation of hog farms already free of African Swine Fever.
As a result, consolidated EBITDA of the Food business increased 39% to P17.0 billion, while consolidated operating income more than doubled to P11.5 billion.
The Beer business, on the other hand, reported revenues of P116.3 billion, 8% higher than the prior year but still lower than pre-pandemic levels.
Nonetheless, the Beer business continued to implement cost management initiatives to preserve profits, resulting in a 10% increase in operating income to P26.9 billion, while EBITDA amounted to P32.6 billion, up 10%.
Meanwhile, SMFB’s Spirits business registered another record year as revenues soared 17% to P42.5 billion. Relevant marketing campaigns, consumer promotions, a broadening distribution network, and efficiencies all supported growth.
Income from operations of the Spirits business rose 39% to P5.3 billion, while EBITDA increased 26% to P6.3 billion.
“We remain optimistic about our ability to deliver growth moving forward. While we expect to contend with the increase in certain raw material costs due to macro events, we are confident that the strategic pivots we’ve made in the last couple of years will keep us on solid footing. We are fortunate that our financial strength enables us to continue pursuing expansion projects that will enable us to further capitalize on the country’s continued recovery,” said SMFB President and CEO Ramon S. Ang.
