The Philippines: San Miguel Food and Beverage Inc. sees net income go up by 10% last year, beer earning spike by 8%
The food and beverage unit of San Miguel Corp. reached new heights in 2023 as it raked in an all-time high profit of P38.1 billion, with all segments clocking in growth, Philstar.com reported on March 7
In its financial report, San Miguel Food and Beverage Inc. (SMFB) said it hiked its net income by 10 percent last year, from P34.7 billion in 2022, to register its highest in history since the company was consolidated in 2018.
SMFB grew its consolidated sales by six percent to P379.8 billion, as all business units tallied revenue improvements on increased volumes and revised pricing.
By sector, SMFB’s food revenues went up by two percent to P178.8 billion, lifted by pricing adjustments made to cover cost hikes. Further, SMFB spent for marketing programs to stimulate demand for its food products.
SMFB said the poultry segment faced challenges all throughout. Specifically, it suffered from capacity constraints and pressure from imported frozen chicken, impacting prices and hurting sales.
Similarly, SMFB’s beer earnings spiked by eight percent to P147.3 billion, attributed to the recovery of liquor consumption here and abroad.
Although domestic sales of beer swelled by eight percent to P131.7 billion, SMFB noted that this is still behind by 25 percent against pre-pandemic levels.
Overseas, SMFB gained from the surging demand for its global brands such as Red Horse, boosting exports in select markets that include China and Thailand.
Meanwhile, SMFB’s spirits division drove up its revenues by 13 percent to P53.6 billion. The unit enhanced the brand recall of San Miguel spirits by spending on consumer promotions to broaden market reach.
SMFB president and CEO Ramon Ang said the objective of the company for 2024 is to build on the progress it has made. He also committed that SMFB will maintain the quality of its products in food, beer and spirits to sustain market leadership.
“We are determined to build on our gains and to continue finding ways to excite and delight our markets, while delivering the same high quality, best value products that are trusted and enjoyed by generations,” Ang said.
SMFB manufactures some of the most staple brands in local groceries like Magnolia, Purefoods, San Miguel Pale Pilsen and Ginebra San Miguel.
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