GSMI profit up 9% in 2022

MANILA, Philippines — Ginebra San Miguel Inc. (GSMI), the liquor arm of San Miguel Corp., reported a net income of P4.5 billion last year, up nine percent from a year ago despite challenges such as global supply chain disruptions, high inflation, and the weak peso.

Consolidated sales reached P47.3 billion, 11 percent more than the previous year while income from operations rose by 13 percent to P6 billion. EBITDA amounted to P6.7 billion, up seven percent.

“This is genuine proof of the company’s strength and true resiliency,” GSMI president and CEO Ramon Ang said.

The company has been expanding distribution coverage in new markets and this enabled GSMI to remain the market leader in the hard liquor category.

In 2022, the total volume growth of seven percent across various product lines significantly boosted the company’s bottom line.

Flagship brand Ginebra San Miguel delivered record-breaking sales volumes, the highest in the history of the brand.

With the company’s rosy performance, GSMI’s board of directors approved the declaration and payment of regular cash dividends of P0.75 and special cash dividends of P1.75 on common shares to all shareholders of record as of March 24, 2023.

This developed as San Miguel Brewery Inc. reported a consolidated net income of P21.8 billion last year, up 6.4 percent.

Sales revenue grew by 17.2 percent to P136.2 billion. Operating income, meanwhile, rose by 9.7 percent to P29.5 billion, resulting in a 21.7 percent operating margin.

SMB said the increase in net income was due to “significant volume growth, favorable brand mix, and implementation of cost efficiency initiatives, boosting its domestic and overseas volumes and profit.”

Last year, SMB put greater focus on consumer needs through innovation, consumer engagement programs and increased marketing support in relevant channels backed by a favorable market environment.

Last December, SMB launched its newest product, San Miguel Cerveza Blanca, a wheat beer positioned in the upscale market.

The company also implemented packaging innovations with the release of the San Mig Light Limited Edition cans in July, the San Miguel Flavored Beer Hallyu Fun cans in September, and the San Miguel Pale Pilsen Play cans in October.

San Miguel’s international operations likewise posted robust growth propelled by higher volumes, better operational efficiencies, and prudent cost management.

Indonesia continued its volume growth and profit uptrend, while Thailand capitalized on the strength of SMB’s specialty beers and premium brands resulting in increasing sales.