San Miguel’s food and beverage unit says net income climbs 10%
SAN MIGUEL Food and Beverage, Inc. (SMFB) saw a 10% increase in its 2023 net income to P38.1 billion, driven by stronger sales, the Angled company announced on Wednesday.
SMFB’s consolidated sales improved by 6% to P379.8 billion on better volumes and pricing strategies, the company said in a regulatory filing.
The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) also climbed by 7% to P66.8 billion.
“We’re determined to build on our gains and continue finding ways to excite and delight our markets…,” SMFB President and Chief Executive Officer Ramon S. Ang said.
Net income of SMFB’s beer division rose by 16% to P25.3 billion while EBITDA rose by 9%.
Consolidated sales of SMFB’s beer division rose by 8% to P147.3 billion led by stronger demand in the local and international markets. However, domestic sales volumes are still 25% below pre-pandemic levels.
Domestic sales rose 8% to P131.7 billion. International revenue grew by 7% led by higher demand for the company’s global brands like Red Horse, which resulted in growth for exports as well as in areas such as South China and Thailand.
SMFB’s spirits division saw a 55% increase in net income to P7 billion while EBITDA climbed by 41% to P9.4 billion. Revenues also rose by 13% to P53.6 billion. “This was driven by efforts to enhance brand equity through consistent advertising, consumer promotions, and expanding market reach,” SMFB said.
Meanwhile, the company’s food division saw a slight drop in its net income and EBITDA to P6.6 billion and P18.3 billion, respectively. Its revenues rose by 2% to P178.8 billion.
SMFB said the food division had a slight decline in financial performance despite the challenges faced by its poultry segment such as capacity constraints and pressure from imported frozen chicken that impacted prices and overall performance.
“This was achieved through strategic pricing adjustments across segments, complemented by aggressive marketing to stimulate demand,” SMFB said.
On Wednesday, SMFB shares closed unchanged at P50.50 apiece.