San Miguel Food and Beverage Inc. (SMFB) posted strong financial results for the first quarter of 2024, with consolidated operating income climbing 13% to ₱13.1 billion, fueled by increased sales in its Food and Spirits divisions.
Consolidated revenues grew 2% to ₱95.4 billion compared to the previous year, while net income rose 1% to ₱10 billion.
“Our solid performance in the first quarter demonstrates our strategic resilience and ability to adapt in a complex market landscape. We remain committed to leveraging our strengths to address challenges and continue delivering exceptional value to our stakeholders,” said Ramon S. Ang, President and CEO of SMFB.
The first quarter marked a positive start to the year for the Food business, sustaining top-line growth and delivering strong profits.
Consolidated sales for the period reached ₱43 billion, up 2% from last year, driven by higher volumes across most segments. The Food business’s operating income surged by 78% to ₱2.7 billion, buoyed by higher gross profits as key raw material prices eased and efficiencies at company-owned facilities improved.
The Processed Meats, Dairy, and Coffee segments were key drivers of top-line growth during the period. Processed meats revenue rose 10%, supported by strong sales of Tender Juicy hotdogs, Purefoods luncheon meat, and corned beef, among others. Similarly, the coffee and dairy segments also delivered higher volumes.
Meanwhile, the Poultry and Animal Nutrition and Health businesses maintained revenue levels from last year due to stable chicken supply. Volume gains in poultry and strong performance from free-range fowl feeds offset the adverse impact of low chicken prices, which resulted from an influx of imported chicken and the lingering effects of African Swine Fever on hog feeds.
The Spirits business also posted strong results in the first quarter. The strength of its core brands, along with supply chain improvements developed over the years, helped protect volumes and profitability.
As a result, revenues grew 17%, driven by an 8% increase in volumes and higher selling prices. Operating income was up 40% to ₱2.3 billion.
The Beer business posted consolidated revenues of ₱37.4 billion, 3% lower than the same period last year due to reduced volume. The first quarter of 2023 saw a build-up in trade in anticipation of a price increase effective March 2023.
Its international Beer business reported a slight decline in volumes due to market mix changes. However, global San Miguel brands continued to deliver strong volumes, growing 4% in the first quarter of the year. Consolidated operating income for the Beer business decreased by 4% to ₱8.1 billion.