SMFB income jumps as units finish strong

SAN MIGUEL Food and Beverage, Inc. (SMFB) posted a 137% increase in its consolidated net income for the first six half to P17.36 billion on the back of stronger performance across its divisions.

SMFB said in a statement on Wednesday that its consolidated revenues for the January-to-June period rose 20% to P146.79 billion, while its earnings before interest, taxes, depreciation, and amortization (EBITDA) went up 66% to P29.28 billion.

The company’s operating income for the period more than doubled to P23.04 billion due to better volumes and selling prices across divisions and continuous cost-containment initiatives and operational efficiencies.

“Our performance in the first half reflects the agility and adaptability of our food and beverage businesses, in the face of unprecedented challenges brought about by the coronavirus disease 2019 (COVID-19). As the situation continues to evolve, the flexibility and resilience we developed this past year will enable us to move forward and pivot quickly as needed,” SMFB President and Chief Executive Officer Ramon S. Ang said in the statement.

SMFB’s food group posted an 11% increase in its first-half consolidated revenues to P72.24 billion due to double-digit volume growth of its protein and animal nutrition businesses.

Consolidated EBITDA of the food group doubled to P11.44 billion while operating income rose more than three-fold to P8.36 billion on stronger gross profit and reduced selling, general, and administrative expenses.

“Protein revenues climbed 20% during the period due to strong demand for poultry products through retail channels, including community resellers, and the recovery of food service accounts. The segment also benefitted from stable poultry supply and favorable prices,” the company said.

“Core products within the prepared and packaged food and flour portfolio posted good volumes as they continued to be top-of-mind, essential items for consumers nationwide,” it added.

Net income of SMFB’s beer business for the first semester rose 89% to P9.51 billion, citing stronger sales volumes.

Consolidated revenues of the company’s beer business grew 27% to P54.33 billion as sales volumes rose 15% due to the easing of quarantine restrictions and lifting of liquor bans, while its operating income climbed 64% to P12.08 billion. EBITDA of SMFB’s beer unit also rose 52% to P14.75 billion.

SMFB’s spirits business recorded a 66% increase in net income to P2.09 billion, while its revenues rose 36% to P20.23 billion.

Income from operations went up 45% to P2.61 billion, while EBITDA rose 35% to P3.10 billion.

“The spirits business continued its strong performance in the first semester as volumes increased 21% year on year. It continued to introduce relevant marketing campaigns and promotions, expand distribution, and sustain supply chain efficiencies,” SMFB said.

Meanwhile, SMFB said it recently launched the SMC Hub, an online shopping platform that offers the company’s different product lines in an effort to expand product reach and provide consumers with an option for no-contact buying methods.

“While our country still faces some uncertainty due to the pandemic, we are committed to doing everything we can to help mitigate its impacts. Moving forward, we will continue to invest in areas that will boost our recovery, maximize shareholder value, while fulfilling the needs of our consumers, communities, and the country,” Mr. Ang said.

On Wednesday, shares of SMFB at the stock exchange rose 0.12% or 10 centavos to close at P82.50 apiece. — Revin Mikhael D. Ochave