By James A. Loyola
San Miguel Food and Beverage, Inc. reported that its consolidated income from operations and net income both grew 8 percent to P46 billion and P30.5 billion, respectively.
In a disclosure to the Philippine Stock Exchange, the firm said it posted consolidated sales of P286.4 billion in 2018, up 14 percent, following double digit revenue growth across its businesses San Miguel Brewery, Inc., San Miguel Pure Foods, and Ginebra San Miguel Inc.
SMB reported 14 percent growth in consolidated revenues to P129.2 billion, driven by higher consumption of leading brands Red Horse and San Miguel Pale Pilsen, along with effective marketing campaigns and defense programs which further strengthened the equity of its brands.
SMPF also delivered higher consolidated revenues of P132.3 billion, up 13 percent, through its strong portfolio of brands, including Magnolia, Purefoods, Tender Juicy, B MEG, Dari Creme, Star, and La Pacita.
Growth was attributed to higher volume growth of its Protein, Prepared & Packaged Food, and Animal Nutrition & Health businesses.
However, earnings were tempered by rising costs of major raw materials, start up costs from expansion projects, and the decline in poultry prices towards the end of the year.
GSMI generated revenues of P24.8 billion, 19 percent higher than the prior year as its marketing campaign helped further boost consumption in 2018. Strong volume growth was mainly driven by flagship brand, Ginebra San Miguel.
Its Chinese wine brand, Vino Kulafu, also posted healthy volume growth in the Visayas and Mindanao regions.
“Despite the high inflationary environment in the past year, we are pleased with the performance of our food and beverage businesses, which all delivered strong revenue growth. This is proof that our brands continue to resonate strongly with consumers,” said SMFB president and CEO Ramon S. Ang.
He added that, “moving forward, we will continue to invest in our businesses to meet the demands of growing consumption in the Philippines, and ensure that our quality products are always accessible to our consumers. We are confident that this will lead to more sustainable earnings growth and value.”