SMFB profits rise 40% to P31 B (Sabong News)
Author
James A. Loyola
Date
MARCH 09 2022
San Miguel Food and Beverage, Inc. (SMFB) reported that its consolidated net income rose 40 percent to P31.4 billion last year, inching forward to the 2019 pre-pandemic level.
In a disclosure to the Philippine Stock Exchange, the firm said consolidated revenues grew 11 percent compared to the prior year to P309.8 billion propelled by higher volumes, market share gains, and better pricing across SMFB’s businesses.
Consolidated EBITDA improved 20 percent to P56.2 billion, while consolidated operating income jumped 31 percent, as a result of productivity improvements, distribution efficiencies, and cost containment initiatives.
SMFB’s Food business posted record consolidated revenues of P151.0 billion, a 12 percent increase over the prior year and 8% better than 2019, with each segment delivering strong results and increased earnings.
The Protein segment posted double-digit growth driving the Food business’ revenues, and bolstered by better pricing of its poultry products and efficient inventory management. The Prepared and Packaged Food segment also posted continued growth.
The company’s Animal Nutrition and Health and Flour segments also continued its strong momentum into 2021 as it benefitted from various campaigns, expansion of distribution networks, and the reopening of customers’ businesses and repopulation of hog farms already free of African Swine Fever.
As a result, consolidated EBITDA of the Food business increased 39 percent to P17.0 billion, while consolidated operating income more than doubled to P11.5 billion.
The Beer business, on the other hand, reported revenues of P116.3 billion, 8 percent higher than the prior year but still lower than pre-pandemic levels.
Nonetheless, the Beer business continued to implement cost management initiatives to preserve profits, resulting in a 10% increase in operating income to P26.9 billion, while EBITDA amounted to P32.6 billion, up 10 percent.
Meanwhile, SMFB’s Spirits business registered another record year as revenues soared 17 percent to P42.5 billion. Relevant marketing campaigns, consumer promotions, a broadening distribution network, and efficiencies all supported growth.
Income from operations of the Spirits business rose 39 percent to P5.3 billion, while EBITDA increased 26 percent to P6.3 billion.
“We remain optimistic about our ability to deliver growth moving forward. While we expect to contend with the increase in certain raw material costs due to macro events, we are confident that the strategic pivots we’ve made in the last couple of years will keep us on solid footing,” said SMFB President and CEO Ramon S. Ang.
He added that, “We are fortunate that our financial strength enables us to continue pursuing expansion projects that will enable us to further capitalize on the country’s continued recovery.”
