SMC reports beer, spirits recover lost ground

THE beer and spirits subsidiaries of San Miguel Corporation (SMC) have shown signs of strong recovery following the more than two months of enhanced community quarantine ( ECQ) brought by the Covid- 19 pandemic, registering immediate and significant volume growth with the easing of restrictions.

SMC President and Chief Executive Officer Ramon Ang said its San Miguel Brewery (SMB), the country’s top beer manufacturer, saw significant volume recovery in June with the lifting of liquor bans in various areas nationwide.

Ginebra San Miguel (GSM) also reported a significant increase in demand, recording its highest volumes ever in June.

“Demand for our beer and liquor products, remain strong, and if June and July are any indication, we’re seeing signs of a strong recovery in the second half of the year,” Ang said.

“We have been working steadily to adapt to the new normal, and adjust our operations where needed, to better serve the market during these challenging times. Despite the declaration of a new, two-week MECQ by government, I believe we’re in a better position now to build on our gains for the rest of the year and beyond. The strong demand we’re seeing is also a big encouragement,” he added.

Domestic operations volumes were lower than in the same sixmonth period last year, due to ECQ, liquor bans, extended closure of beer selling outlets, as well as imposition of higher excise taxes on beer products.

International operations likewise reflected the effect of different levels of lockdown and restrictions in countries where SMB operate, particularly in Indonesia. Hong Kong, Vietnam, and its Exports markets, however registered favorable results.

SMB’s revenues for the first half ended at P42.8 billion while operating income amounted to P7.4 billion. Net income as of June 30 stood at P5 billion.