SAN MIGUEL Food and Beverage, Inc. (SMFB) recorded a first-quarter consolidated operating income of P13.1 billion, 13% higher driven by higher sales in its Food and Spirits divisions.
“We remain committed to leveraging our strengths to address challenges and continue delivering exceptional value to our stakeholders,” SMFB President and Chief Executive Officer Ramon S. Ang said in a media release on Wednesday.
Without disclosing comparative figures, the company said its consolidated revenues grew by 12% to P95.4 billion for the first quarter.
SMFB said its food business sustained its revenue growth and was able to deliver “strong profits” for the period.
Combined sales for the first quarter hit P43 billion, marking a 2% increase from the same period last year, fueled by higher volumes across its segments.
The food business’ operating income soared by 78% to P2.7 billion on higher gross profits as key raw materials eased, SMFB said.
Its processed meats, dairy, and coffee segments drove the company’s revenue growth for the first quarter; processed meats revenue expanded by 10%.
Revenues from poultry and animal nutrition and health businesses were sustained from last year’s level due to the stable supply of chicken, the company added.
The spirits business managed to post strong performance for the first three months of the year, SMFB said.
“The strength of its core brands, along with supply chain improvements developed over the years, helped protect volumes and profitability,” the company said.
Revenues from its spirits business climbed 17% due to higher selling prices, while operating income went up to P2.3 billion.
The beer business recorded a revenue of P37.4 billion, lower by 3% compared to the same period last year due to reduced volumes, while its international beer business also saw a decline in volumes due to market mix changes, the company said.
At the local bourse on Wednesday, shares in the company gained 10 centavos or 0.22% to end at P45.40 each. — Ashley Erika O. Jose
