SMFB income slides to over P7B in H1

SAN Miguel Food and Beverage Inc.’s (SMFB) net income plunged by half to P7.34 billion in the six months ending June from P14.67 billion in the same period last year.

Revenues also declined by 19 percent to P122.82 billion from P151.11 billion year-on-year.

In a disclosure on Thursday, the listed food-and-drink arm of San Miguel Corp. said the full impact of the coronavirus disease 2019 (Covid-19) pandemic weighed on its volume performance in the second quarter, particularly those of its beer and spirits divisions.

As part of enhanced quarantine measures imposed in mid-March to curb the spread of Covid-19, liquor bans were imposed in different cities, food service and retail establishments were closed, and the delivery of goods and movements were limited.

“As the pandemic continues to affect our everyday lives, we keep in mind that this is only temporary. We remain steadfast in our commitment to ensure food sufficiency and help and provide opportunities to the most vulnerable communities,” SMFB President and Chief Executive Officer Ramon Ang said in the disclosure.

In response to the crisis, San Miguel Foods, SMFB’s food division, implemented nontraditional selling channels to address consumer demand. This includes rolling out mobile stores, community reselling and using online ordering platforms and home deliveries.

As a result, its consolidated net income more than doubled to P1.34 billion during the period, and consolidated revenues hit P65.18 billion.

SMFB’s prepared and packaged food segment cushioned the impact of the quarantine on the food division as it sustained revenue growth of 17 percent, benefiting from consumer stockpiling and demand for essential packaged goods.

Demand for canned and refrigerated meats also grew, as did sales of dairy products, which climbed by double digits.

The flour segment’s revenues grew slightly on the back of households’ increased demand for breads and the resumption of operations of its institutional customers.

San Miguel Brewery Inc., SMFB’s beer division, saw its net income reach P5.03 billion and its consolidated revenues plunge by 39 percent to P42.79 billion on the back of the liquor bans.

Ginebra San Miguel Inc. saw its volumes rebound after lockdown restrictions were eased and liquor bans were lifted, resulting in its net income growing by 28 percent to P1.26 percent and its consolidated revenues rising to P14.84 billion.

SMFB shares climbed by 30 centavos or 0.48 percent to close at P63.20 apiece on Thursday.