San Miguel Food and Beverage, Inc. (SMFB) delivered another strong performance in 2022, posting record earnings since the company was consolidated four years ago. This, against the backdrop of a volatile year marked by heightened geopolitical tensions, inflationary pressures and supply chain challenges, among others.
For the full year 2022, consolidated revenues rose 16% year-on-year to P358.9 billion, driven by higher volume growth across its beer, spirits, and food divisions. The company also optimized pricing strategy across its portfolio to manage the impact of rising raw material costs.
Consolidated EBITDA and consolidated income from operations grew 12% and 11% to P62.7 billion and P48.7 billion, respectively. Consolidated net income, on the other hand, increased 10% from the same period last year to P34.7 billion.
“SMFB’s results prove the resilience of our business model as we navigated a very difficult environment in 2022. Looking to 2023, we expect to continue to deliver operational excellence and invest in growth to drive long-term value for our shareholders. At the same time, we will continue to ensure that our products are within reach of every Filipino,” said Ramon S. Ang, President and CEO of SMFB.
SMFB’s Beer business reported consolidated revenues of P136.2 billion, up 17%. Domestic operations saw volumes grow amidst a favorable market environment, continued easing of COVID- 19 restrictions, a buoyant economy, and robust consumer spending.
Its international operations sustained its strong performance with volumes up double-digit from the prior year, on the back of gains in its Exports, Indonesia, and Thailand operations. The Beer business continues to implement various programs in key channels to further spur demand. For the full year, Beer’s EBITDA and income from operations both increased 10% to P36 billion and P29.5 billion, respectively.
Meanwhile, coming off eight straight years of solid growth, the Spirits business maintained its momentum and posted an 11% sales growth to P47.3 billion, driven by higher volumes and a modest price increase earlier in the year. EBITDA increased 7% to P6.7 billion, while income from operations rose 13% to P6 billion. The Spirits business continues to invest in strengthening brand equity and expanding distribution reach to further its market presence.
SMFB’s Food business sustained its robust top-line performance throughout 2022, posting consolidated revenues of P175.3 billion, 16% higher than last year. Almost all Food businesses delivered strong double-digit revenue growth, led by its Flour, Feeds and Prepared and Packaged Food businesses. Amidst rising inflation, volumes in most segments grew, boosted by intensified distribution, aggressive promotional activities, the launch of new products and utilization of additional capacity from new facilities.
Consolidated EBITDA for the Food business amounted to P20.1 billion,18% higher year-on-year, while income from operations rose 15% to P13.3 billion.
