Across the board growth lifts SMFB profit to P30 billion

MANILA, Philippines — San Miguel Corp.’s food unit delivered a profit of P30.4 billion in the nine months to September, boosted by consumer preference for its food, beer and spirit products.

Based on its financial report, San Miguel Food and Beverage Inc. (SMFB) hiked its net income by 11 percent during the period as all of its revenue sources posted robust growth.

Sales went up by five percent to P291.1 billion, an upswing caused by steady demand for flagship products and higher prices of hard liquor.

San Miguel Foods raised its revenue by four percent to P134.3 billion, as demand for processed goods shot up, particularly for canned meat, dairy products and instant coffee. The segment also benefited from lower costs of raw materials, allowing SMFB to produce more at a cheaper rate.

San Miguel Brewery Inc. (SMBI) also delivered a three percent rise in revenue to P111.2 billion on higher sales here and abroad. The bulk of SMBI’s income came from domestic sales at P99.1 billion, while the remainder was sourced from international buyers at $212.4 million.

SMBI said it is working on targeted initiatives to keep up its momentum for the rest of the year.

Further, Ginebra San Miguel Inc. (GSMI), the maker of the popular spirit Ginebra, achieved a 17 percent spike in its revenue to P45.6 billion due to higher prices and volume.

Like SMBI, GSMI hopes to keep its growth going until the Christmas season, banking on brand recall and efficient distribution to expand in the spirits business.

With every business segment going good, SMFB recorded a net income margin of 10 percent. At this level, the company said shareholders can expect further growth, more value and operational efficiency moving forward.

SMFB chairman Ramon Ang believes the company is taking a path leading to long-term growth, as its portfolio is diversified enough to overcome economic risks. He also said SMFB is trying to increase economic contribution through its products that cater to the mass market.

“Through strategic investments in our brands, cost management, and adapting to market trends, we are building resilience and setting the stage for long-term growth,” Ang said.

“Beyond profits, we view ourselves as partners in nation-building, ensuring that our products and initiatives contribute to economic progress and community support,” he added.