GSM profit up 59% in 2019, down in Q1

GINEBRA San Miguel Inc. (GSM) saw its net income climb to P1.67 billion last year on IMPROVED SALES, AND SLIP IN THE fiRST QUARTER of 2020 on the impact of the coronavirus disease 2019 (Covid-19) pandemic on its business.

In a disclosure on Wednesday, coverage and the successful rollout the listed distillery arm of of its marketing campaigns. San Miguel Corp. said the 2019 San Miguel President and Chief amount was a 59-percent increase Operating Officer Ramon Ang said from P1.05 billion the year before. in the disclosure that although

Its topline also grew by 17 percent GSM had “broken records” last to P29.06 billion from P24.83 year, this year presented “a different billion in 2018, it added. challenge for all of us.”

GSM’s sales volume rose by 14 “The whole world was caught percent, its highest in nine years, unprepared to deal with a crisis of on the back of wider distribution this magnitude,” he added, referring to the pandemic, which forced the government to put Luzon under enhanced community quarantine (ECQ) in mid-March to contain its spread in the country.

GSM was particularly hit hard by the lockdown, which came with a temporary ban on liquor in some areas. As a result, the company’s net income dropped to P474.35 million in the first three months from P615.927 million year-on-year and consolidated revenues fell to P7.45 billion from P8.27 billion.

“Despite this, I am so proud of how our people stepped up to respond to the crisis. Throughout the quarantine period, GSM was the first to repurpose its facilities amid the liquor ban to produce disinfectant alcohol and meet a pressing national need. These alcohol were donated for free to critical health facilities and local government units nationwide,” Ang said.

The company shifted from producing liquor to producing 70-percent ethyl alcohol in March to help address the surge in alcohol demand.

“This pandemic will cast a long shadow, but we [remain] optimistic as we continue to be grounded in our purpose of making lives better for the communities we serve,” Ang said.

GSM shares added 90 centavos or 2.85 percent to close at P32.50 apiece on Wednesday.