SAN Miguel Food and Beverage, Inc. (SMFB) reported a consolidated net income growth of 40% to P31.4 billion in 2021, driven by market share gains and better pricing across its businesses.
“We remain optimistic about our ability to deliver growth moving forward. While we expect to contend with the increase in certain raw material costs due to macro events, we are confident that the strategic pivots we’ve made in the last couple of years will keep us on solid footing,” SMFB President and Chief Executive Officer Ramon S. Ang said in a disclosure on Wednesday.
Consolidated revenues grew 11% to P309.8 billion, while consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 20% to P56.2 billion.
Meanwhile, consolidated operating income jumped 31%, as a result of productivity improvements, distribution efficiencies, and cost containment initiatives. Operating margins widened 100 basis points for the year, the company said.
SMFB’s food business posted consolidated revenues of P151 billion or a 12% increase from 2020, while its consolidated EBITDA increased 39% to P17 billion. Consolidated operating income more than doubled to P11.5 billion.
“The protein segment posted double-digit growth driving the food business’ revenues, bolstered by better pricing of its poultry products and efficient inventory management,” the company said.
The prepared and packaged food segment had higher contributions from Tender Juicy hotdogs and Purefoods chicken nuggets, as well as growing sales from new products, including meat-free line Veega, Purefoods spaghetti sauce, and seafood nuggets.
The beer business, on the other hand, reported revenues of P116.3 billion, 8% higher than the prior year but still lower than pre-pandemic levels. Operating income went up 10% to P26.9 billion, while EBITDA amounted to P32.6 billion, up 10%.
Meanwhile, the spirits business reported income from operations increased by 39% to P5.3 billion, revenues rose 17% to P42.5 billion, and EBITDA increased 26% to P6.3 billion, due to marketing campaigns, consumer promotions, and broadened distribution networks.
“We are fortunate that our financial strength enables us to continue pursuing expansion projects that will enable us to further capitalize on the country’s continued recovery,” Mr. Ang added.
On Wednesday, company shares fell by 2.88% or P1.90 to close at P64.05 apiece at the stock exchange. — Luisa Maria Jacinta C. Jocson