San Miguel Corporation (SMC) spirits unit Ginebra San Miguel Inc. (GSMI) reported a robust first semester performance, buoyed by steady volume growth resulting from strategic marketing campaigns that helped boost consumption.
For the first six months of the year, GSMI’s volumes reached 22.2 million cases, a 1% improvement over the same period last year.
With sustained volume growth, sales revenues rose 10% to Php 25.4 billion, while gross profit improved 2% to Php 6.2 billion.
Income from operations went up 3% to Php 3.4 billion, while EBITDA surged 53% to Php 5.5 billion.
Net income for the first six months of the year reached Php 4.1 billion, 64% more than the same period last year.
“Through well thought-out strategies and campaigns, GSMI has continued to stay on top of its market, and has become a reliable performer and contributor to total San Miguel Group performance. With the initiatives it has launched, we’re looking to further build on its momentum and continue performing well for the rest of the year, said SMC President Ramon S. Ang.
Ginebra San Miguel thematic campaign, “Iba and Ngiti Ngayon sa One Ginebra Nation”, helped sustain strong brand equity and, complemented by a consumer promo in March, spurred consumption– cushioning the effects of a price increase implemented for all GSMI products.
On-ground events, particularly the return of the Ginumanfest concert series and fiesta activations, also boosted awareness and brought GSMI brands closer to consumers.
Penetration drives and sampling activities in resorts and popular on-premise outlets were likewise intensified, with the first half culminating in its annual event celebrating World Gin Day in June, where GSMI pushed its broader “Gin-Is-In” campaign. This was further supported by four pocket launches and 50 bar activations in major cities.
At the meeting of its Board of Directors last August 2, the GSMI BOD approved the declaration and payment of regular cash dividends of Php 0.75, and special cash dividends of Php 1.75 on common shares to all shareholders of record as of August 16, 2023.