San Miguel Food and Beverage Inc. (SMFB) said its income in the January-to-June period was cut in half to P7.34 billion, from last year’s P14.67 billion, as the lockdowns weighed on the performance of its beer and spirits divisions.
Consolidated revenues reached P122.82 billion in the first half, 19 percent lower than last year’s P151.1 billion.
The company said it had consolidated earnings before interest, taxes depreciation and amortization (Ebitda) of P17.67 billion, some P8.89 billion lower than last year, mainly due to P11.49-billion decline recorded by the beer division.
This was, however, partly offset by the positive performance of the food and spirits divisions. Consolidated operating income reached P11.36 billion, the company said.
“As the pandemic continues to affect our everyday lives, we keep in mind that this is only temporary. We remain steadfast in our commitment to ensure food sufficiency and help and provide opportunities to the most vulnerable communities,” Ramon S. Ang, the company’s president and CEO, said.
“We continue to build long-term resilience across SMFB. At the same time, we are mindful of the changes necessary to help us navigate through the crisis in the short-term. All told, we believe that SMFB is in a position to emerge stronger and better than it was before.”
San Miguel Foods, formerly Pure Foods, registered consolidated revenues of P65.18 billion in the first semester, 1 percent lower than last year’s P66.13 billion.
Consolidated net income more than doubled to P1.34 billion for the period, from last year’s P447 million.
The prepared and packaged food segment sustained its revenue growth of 17 percent, cushioning the impact of the community quarantines on the food division, as it benefitted from consumer stockpiling and demand for essential packaged goods during the quarantine period, the company said.
Consumer demand for canned meats, such as corned beef and Spam, as well as refrigerated meats soared. Sales of dairy products also grew by double digits.
The flour segment, meanwhile, registered a slight growth in revenues, driven by the increased demand for breads by households and the resumption of operations of institutional customers, it said.
San Miguel Brewery Inc.’s income in the first half fell 62 percent to P5.03 billion, from last year’s P13.25 billion as sales dropped. Its revenues in the first half ended at P42.79 billion, down 39 percent from last year’s P70.28 billion.
Liquor maker Ginebra San Miguel Inc., meanwhile, managed to grow slightly to P14.84 billion, from last year’s P14.69 billion.
Net income rose 28 percent to P1.26 billion, from P980 million last year, a turnaround from its first quarter performance.
The company said it remains optimistic given the recovery in actual volume which started mid-May and continued to July, with beer posting a double-digit volume increase from June to July. Spirits volumes remained strong, with July recording higher annual volumes.
“On the food side, there has been an increase in the number of food service and institutional customers resuming operations, paving the way for a recovery in the segment in the coming months,” it said.
“SMFB remains fundamentally sound with a strong balance sheet, relatively light debt service obligations, and sufficient liquidity. It has reduced its planned expenses for the year without sacrificing long-term investments.”