Net income of San Miguel F&B unit rises 8% to ₧30.5B

SAN Miguel Food and Beverage Inc. (SMFB), the consolidated food and beverage unit of the conglomerate, on Wednesday said its income last year grew 8 percent to P30.5 billion after its three major units posted double-digit growth rates.

Consolodated sales of San Miguel Brewery Inc. (SMB), San Miguel Pure Foods Inc. and Ginebra San Miguel Inc. grew 14 percent to P286.4 billion in 2018, it said.

“Despite the high inflationary environment in the past year, we are pleased with the performance of our food and beverage businesses, which all delivered strong revenue growth. This is proof that our brands continue to resonate strongly with consumers,” SMFB President and CEO Ramon S. Ang said.

“Moving forward, we will continue to invest in our businesses to meet the demands of growing consumption in the Philippines, and ensure that our quality products are always accessible to our consumers. We are confident that this will lead to more sustainable earnings growth and value,” Ang said.

Consolidated income from operations also grew 8 percent to P46 billion, it said.

Beer unit SMB reported a 14-percent growth in consolidated revenues to P129.2 billion, driven by higher consumption of brands Red Horse and San Miguel Pale Pilsen, along with marketing campaigns.

Pure Foods also had higher consolidated revenues of P132.3 billion, up 13 percent, through its strong portfolio of brands including Magnolia, Purefoods, Tender Juicy, B‐ MEG, Dari Creme, Star and La Pacita. Growth was attributed to higher volume growth of its protein, prepared and packaged food, and animal nutrition and health businesses.

“However, earnings were tempered by rising costs of major raw materials, start‐up costs from expansion projects, and the decline in poultry prices towards the end of the year,” it said. Ginebra, meanwhile, generated revenues of P24.8 billion, up 19 percent than the previous year.