San Miguel Food and Beverage, Inc. (SMFB) delivered topline growth in the first half of 2023 despite an increasingly challenging environment, marked by rising cost of raw materials, an increase in excise taxes, as well as elevated logistics costs.
In the first six months of the year, consolidated revenues rose 7% over the same period in 2022 to P184.6 billion, driven by a combination of volume growth and efficient pricing strategy. EBITDA and consolidated net income were steady at P32.3 billion and P18.8 billion, respectively.
SMFB’s Beer business sustained its growth momentum as consolidated sales jumped 14% from last year to P74.1 billion, with improvements in consumer demand from its domestic and international markets.
Revenues from Beer’s domestic operations jumped 13% to P66.0 billion, on the back of a 9% increase in volumes driven by the recovery of on-premise channels, resumption of tourism activities, relevant brand campaigns, intensified off-take generating programs, and other initiatives.
On the other hand, revenue from its international operations rose 16%, as a result of strong demand from its Exports, Hong Kong, and Thailand markets.
The Beer business’ consolidated EBITDA was 15% higher than the same period last year at P19.7 billion, while consolidated net income was up 26% at P13.5 billion.
Meanwhile, sales volume of the Spirits business accelerated throughout the semester. Coupled with better selling prices, the business registered a 10% improvement in revenues from the same period last year to P25.4 billion. EBITDA and net income were up 53% and 64% at P5.5 billion and P4.1 billion, respectively.
SMFB’s Food business, on the other hand, managed to maintain sales revenues at P85.1 billion as it continuously provided cost-conscious consumers what they want amid headwinds from higher raw material costs.
“As uncertainties and risks to the economic environment remain, we will continue to take the necessary actions to mitigate the impacts on each of our businesses, including leveraging on each of our strengths to improve overall performance,” said Ramon S. Ang, President and CEO of SMFB.
“We will continue to invest in building our brands and strengthening our portfolio in order to position SMFB for long-term sustainable growth,” said Ang.