The Philippines: San Miguel Food and Beverage posts higher revenue and flat net income for January-September

Higher revenues were not enough to lift the over-all earnings of San Miguel Food and Beverage, Inc. (SMFB), as it ended the nine months to September with a flat net income, CNN Philippines reported on November 6.

The listed food and beverage firm said its consolidated net income remained at ₱22.9 billion year-on-year.

Operating income also stayed at ₱33.58 billion despite an eight percent increase in the third quarter.

The static growth comes amid a 10-percent uptick in its consolidated revenues, driven by steady volume expansion across key products.

SMFB’s consolidated revenues jumped to P226.36 billion in the nine months to September from ₱206.6 billion a year ago.

Food revenues rose six percent to ₱101.05 billion, with the prepared and packaged food segment posting a 13-percent increase, particularly its processed meats, dairy, and spreads business.

The company attributed the growth to strong consumer demand as it implemented programs to ease pressure on margins, including growing its value-added business for more stable margins.

SMFB’s beer business, meanwhile, also saw its revenues rise 11 percent to ₱103.88 billion, backed by a nine percent growth in domestic volume.

For the spirits and liquor segment, revenues grew by 20 percent to ₱21.43 billion, as volumes jumped 15 percent mainly due to its campaigns “Pilipino Ako, Ginebra Ako” for Ginebra San Miguel and “I Choose Mojito” for GSM Blue.

“Despite what is typically a seasonally weak third quarter, sales and marketing campaigns enabled domestic volumes to grow. For the remainder of the year, the company will continue its marketing programs to capitalize on the holiday season,” it said.

SMFB President and CEO Ramon S. Ang said the company “[remains] confident about the strength of the consumer sector and the overall Philippine economy.”

“We will continue to develop products that are relevant to our target market and make those available in a fresh and timely manner,” Ang said.

Shares at SMFB slightly declined by 3.07 percent to close at ₱90.05 apiece on November 6 from ₱92.90 the previous day.

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