Ginebra San Miguel Inc., the liquor unit of conglomerate San Miguel Corp., said the Covid-19 pandemic will make it tough for the company to repeat its performance last year, when it posted a record income.
“We are happy to report that we have broken records in 2019. However, 2020 presents a different challenge for all of us. The whole world was caught unprepared to deal with a crisis of this magnitude,” San Miguel President and COO Ramon S. Ang said.
“This pandemic will cast a long shadow, but we are optimistic as we continue to be grounded in our purpose of making lives better for the communities we serve. We’ve been through many more challenging times in the past and we believe we will come out of this crisis stronger, better. We will beat this pandemic together.”
In March, Ginebra shifted its operations from liquor manufacturing to the production of 70 percent ethyl alcohol for donation. To date, it has donated 1.3 million liters of alcohol to frontliners in hospitals and local government units nationwide.
“Throughout the quarantine period, Ginebra was the first to repurpose its facilities, amid the liquor ban, to produce disinfectant alcohol and meet a pressing national need. These alcohol were donated for free to critical health facilities and local government units nationwide,” Ang said.
Ginebra’s income rose 59 percent last year to P1.67 billion from the previous year’s P1.05 billion.
Consolidated revenues ended up 17 percent higher to P29.06 billion from the previous year’s P24.83 billion.
Sales volume was also up 14 percent, its highest in nine years due to wider distribution coverage.
For the first quarter, however, its income fell 23 percent to P474.35 million from last year’s P615.92 million. Sales fell P7.45 billion, from last year’s P8.26 billion.
“The group, being engaged in the manufacture and sale of alcoholic beverages, has been affected by such proclamation [of lockdown in the country]. Given the restricted mobility and curtailed economic activities, the group’s revenue declined by 10 percent compared to same period last year,” the company said in a report.