San Miguel Food and Beverage, Inc. (SMFB) maintained its growth momentum in the first quarter of the year, even as it faced multiple headwinds from inflationary pressures, excise tax increases and continuing geopolitical uncertainties, among others.
Consolidated revenue rose 12% to P93.2 billion, driven by strong volume growth from its key businesses.
Consolidated EBITDA was 10% better than the same period last year at P17.2 billion with overall EBITDA margins sustained at 19%. Consolidated net income increased 8% to P9.9 billion.
SMFB’s Beer business posted stellar first quarter results with consolidated sales reaching P38.3 billion, a 29% increase from the same period last year. Both its domestic and international operations posted positive sales performances with the easing of COVID-19 restrictions in markets where it operates.
Sales from Beer’s domestic operations jumped 29% to P34 billion, largely on account of higher sales volume. Domestic beer volumes grew 26% on the back of new brand campaigns and offtake-generating programs. On the other hand, revenue from its international operations rose 27% largely as a result of stronger volumes, particularly from its Export, Hong Kong, South China, Thailand, and Vietnam operations.
The Beer business’ EBITDA was 27% higher than the same period last year at P10.2 billion, while net income was up 38% at P6.8 billion.
Meanwhile, SMFB’s Spirits business generated revenues of P12.9 billion, 3% higher year-on-year. EBITDA and net income were up 73% and 81% at P3.5 billion and P2.5 billion, respectively.
Meanwhile sales for SMFB’s Food business improved by 3% to P41.9 billion, driven by strategic pricing across all its segments. Almost all Food segments delivered higher revenue growth.
In particular, demand for its branded business products remained steady, benefiting from the continued normalization of economic activities in the post-Covid world. While topline growth was favorable, higher commodity prices, pulled down consolidated EBITDA to P3.5 billion.
“Despite the challenging environment, our brands remain top-of-mind of consumers and we intend to sustain this momentum by investing further in brand-building efforts and innovation to further drive growth,” said Ramon S. Ang, President and CEO of SMFB.
“We are also focused on optimizing our resources and processes for better efficiency to sustainably manage our current businesses for long-term profitability,” added Ang.
