San Miguel Food and Beverage Inc. (SMFB) said its income in the first quarter dropped 20 percent to P5.8 billion, from last year’s P7.36 billion, as the Covid-19 pandemic and quarantine restrictions weighed on its performance.
The company reported that its consolidated revenues in the first three months of the year fell 9 percent to P68 billion, from last year’s P75.65 billion.
Operating income was also impacted by an increase in excise taxes for the beer and spirits divisions in January of this year, the company said.
“During these difficult times, we remain steadfast in our commitment to ensure that there is enough food for every Filipino. It is our goal to provide nourishment and safety especially to the most vulnerable communities,” said Ramon S. Ang, SMFB president and CEO.
“The road to recovery may be long. However, over the last 130 years, we successfully overcame many challenges. We remain confident that with our strong fundamentals and ability to deliver good and affordable products to our consumers, we will overcome this once again.”
In the first quarter, the food division generated consolidated revenues of P33.2 billion, 2 percent higher last year’s record.
While the protein and animal nutrition business posted a 3-percent decline in revenues, there was a significant spike in sales of some food categories as consumers stocked up on essential supplies leading up to and during the ECQ period.
The beer division posted consolidated revenues of P28.4 billion, 18 percent lower than the same period last year. Volumes for San Miguel Beer were up by single digits in the first two months of the year with March 2020 volumes experiencing a drop given the ECQ and the resulting liquor bans.
Its liquor unit had a good start in the first two months of the year with sales volumes 15 percent higher than the same period last year, but ended the quarter with a 14-percent drop year-over-year. First quarter revenues declined by 10 percent year-on-year to P7.5 billion.