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SMFB breaks 2018 net income, posts P38.1 billion in 2023

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San Miguel Food and Beverage Inc. (SMFB) ended 2023 with outstanding financial results,  despite the challenges of an unpredictable macroeconomic landscape. 

Consolidated sales reached P379.8 billion, a 6% increase from the previous year, with all business units reporting growth in sales compared to 2022. This was attributed to improved volumes and pricing strategies. 

EBITDA was up 7% at P66.8 billion, while net income jumped 10% to P38.1 billion, the highest net income figure achieved by the Group since SMFB’s consolidation in 2018. 

“Our success in 2023 reflects our team’s dedication and drive for excellence. We’re determined to build on our gains and continue finding ways to excite and delight our markets, while delivering the same high quality, best value products that have been trusted and enjoyed by generations,” Ramon S. Ang, SMFB president and CEO said. 

SMFB’s Beer division reported an 8% increase in consolidated sales to P147.3 billion, fueled by higher demand in both local and international markets. Domestic sales volumes, however, are still 25% below pre-pandemic levels. 

Domestic sales rose 8% to P131.7 billion, boosted by effective marketing strategies and expanded sales efforts. International revenue also grew by 7%, propelled by strong demand for  San Miguel’s global brands, such as Red Horse, leading to significant growth in regions like  South China, Thailand, and through Exports. EBITDA and net income increased by 9% and  16% respectively, with net income reached P25.3 billion. 

Its Spirits division also reported higher growth, with revenues up 13% to P53.6 billion. This was  driven by efforts to enhance brand equity through consistent advertising, consumer promotions,  and expanding market reach. Both EBITDA and net income saw substantial increases of 41%  and 55%, amounting to P9.4 billion and P7.0 billion, respectively. 

Meanwhile, its Food division reported revenues of P178.8 billion, a 2% increase from the previous year. This was achieved through strategic pricing adjustments across segments,  complemented by aggressive marketing to stimulate demand. 

Although the poultry segment faced challenges, including capacity constraints and pressure from imported frozen chicken that impacted prices and overall performance, the Food division concluded the year with a net income of P6.6 billion and EBITDA of P18.3 billion, exceeding pre-pandemic figures despite a slight decrease from the prior year.

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