SMFB bounces back in first quarter with ₱9.7-B income

San Miguel Food and Beverage Inc. bounced back to profitability in the first quarter of 2021 with a 66 percent consolidated net income growth to ₱9.68 billion from the same period last year.

“After a challenging year dominated by the COVID-19 pandemic, SMFB quickly implemented programs to adapt to changing market conditions and capture new opportunities,” the firm said in a statement.

As a result, consolidated sales reached ₱76.36 billion, up 11 percent compared to the same period in 2020. Consolidated EBITDA hit ₱15.63 billion, up 35 percent, while consolidated income from operations rose 45 percent to ₱12.57 billion. SMFB noted that, this is a solid achievement considering more favorable pre-pandemic conditions during most of the first quarter in 2020.

“Our first quarter results reflect the resilience of SMFB throughout the crisis,” SMFB President and CEO Ramon S. Ang said.

He added that, “The Group has proven its agility and ability to control costs, manage cash, and stay on track to deliver long-term profitable growth while ensuring our products are always available to our customers and vulnerable communities that need them the most.”

San Miguel Brewery Inc. (SMB) posted consolidated revenues of ₱28.84 billion for the first quarter, up 2 percent. However, volumes remained depressed with the continued closure of most ontrade channels and the lingering impacts of the enhanced community quarantine in Metro Manila and nearby provinces.

EBITDA amounted to ₱8 billion for the first quarter of the year, up 23 percent from the same period in 2020, while net income ended 45 percent higher at ₱5.46 billion.

Ginebra San Miguel’s consolidated revenues surged 52 percent to ₱11.34 billion for the first three months of the year, driven by a 29 percent year-on-year increase in volumes, the highest sales volume in a single quarter in the company’s history. EBITDA amounted to ₱1.54 billion and net income ended at ₱1.04 billion, up 69 percent and 120 percent, respectively.

Meanwhile, San Miguel Foods reported a 9 percent improvement in first quarter consolidated revenues to ₱36.18 billion due to strong demand and more stable pricing across all business segments. Of note is the 11 percent yearon-year growth of its Protein segment, which continues to recover given improved market demand-supply dynamics.

Amidst the continued challenges of the COVID-19 pandemic, SMF was able to adapt quickly by launching its community resellers program, now totaling close to 11,000 active resellers, to improve availability and consumer access to its poultry and other SMF products.

Its Prepared and Packaged Food segment, meanwhile, continues to remain a bright spot for the business, growing 6 percent as consumers continue to prefer at-home dining.

SMF’s EBITDA amounted to ₱6.09 billion, 45 percebnt higher year-on-year. Net income more than doubled to ₱3.39 billion from the same period in 2020.

“As we continue to navigate the pandemic, we remain optimistic about the future and stay focused on driving investments in products and innovate on systems that will better address the needs of Filipinos. We will work hard with greater efficiency and flexibility in order for our country to emerge from this pandemic stronger and more formidable,” said Ang.