The Philippines: San Miguel Corps beer unit sees January-June revenue drop to P42.8 bln from P70.3 bln last year
San Miguel Brewery said on August 4 its net income stood at P5 billion in the first half of the year.
This was 62 percent lower compared to the P13.3 billion income it booked during the same period in 2019, as sales of alcoholic drinks were hammered by lockdowns and liquor bans imposed to curb the spread of COVID-19.
The beer unit of San Miguel Corp reported P42.8 billion in revenues in the January-to-June period, down from P70.3 billion during the same period last year.
Domestic operations volumes were lower than in the same six-month period last year, due to the implementation of the ECQ (enhanced community quarantine), liquor bans, the extended closure of beer selling outlets, as well as the imposition of higher excise taxes on beer products, the company said.
San Miguel, however, said its beer and spirits subsidiaries showed signs of a strong recovery following the more than two months of lockdowns.
Demand for our beer and liquor products remain strong, and if June and July are any indication, were seeing signs of a strong recovery in the second half of the year, said San Miguel Corp president and chief operating officer Ramon Ang.
Ginebra San Miguel Inc, SMBs sister firm, also reported a significant increase in demand, recording its highest volumes ever in June.
Ang said San Miguels beer and spirits subsidiaries are adapting to the new normal, and adjusting operations where needed.
Despite the declaration of a new, two-week MECQ by government, I believe were in a better position now to build on our gains for the rest of the year and beyond. The strong demand were seeing is also a big encouragement, Ang said, referring to the restoration of a stricter lockdown in Metro Manila and surrounding provinces this week.
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