Ginebra hopeful mof posting profit amid health crisis

MANILA, Philippines  — Ginebra San Miguel Inc., San Miguel Corp.’s hard liquor business, expects to still post an income this year despite a challenging business environment.

“Going forward, it will be a bit lower than last year but we will register strong income,”  GSMI chairman Ramon Ang said during the company’s annual stockholders meeting last week.

The company posted a net income of P474 million in the first quarter, down 23 percent due to restrictions and the liquor ban related to the enhanced community quarantine which was imposed to contain the coronavirus disease 2019 or COVID-19 pandemic.  Net sales declined by 10 percent to P7.4 billion.

Ang said during difficult times, sales of hard liquor remain strong as it is sometimes the preferred drink compared to beer.

“So Ginebra will be okay for the whole year of 2020 and will be able to declare dividends,” Ang said.

Last year, the company posted a net income of P1.8 billion on the back of gross revenue of P29 billion.

GSMI operates three liquor bottling facilities located in Cebu, Pangasinan and Laguna. It has toll manufacturing agreements with third-party players.

The company’s flagship product is Ginebra San Miguel.  Its other products include G.S.M. Blue, Gran Matador Brandy, Primera Light Brandy, Antonov Vodka, and Vino Kulafu, among others.