San Miguel Food & Beverage swings back to profitability, earnings surge 66% in Q1

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Metro Manila (CNN Philippines, May 5) — San Miguel Food and Beverage Inc. returned to profitability in the first three months of 2021, with net income soaring 66% to ₱9.68 billion despite the Philippines' ongoing battle against the coronavirus pandemic.

In a statement, the group said its consolidated sales improved by 11% to ₱76.36 billion, while income from operations also climbed 45% to ₱12.57 billion in the first quarter.

The food unit of San Miguel Corp. said its earnings before interest, taxes, depreciation, and amortization stood at ₱15.63 billion, up 35%.

"Our first quarter results reflect the resilience of SMFB throughout the crisis," SMFB President and Chief Executive Officer Ramon S. Ang said in the statement.

"The group has proven its agility and ability to control costs, manage cash, and stay on track to deliver long-term profitable growth while ensuring our products are always available to our customers and vulnerable communities that need them the most," the business tycoon added.

San Miguel Brewery Inc., meanwhile, saw its revenues slightly up by 2% to ₱28.84 billion. However, the company noted volumes "remained depressed" as operations of most of its on-trade channels were still suspended, worsened by the reimposition of the hard lockdown in the capital.

Despite this, SMB profit in the period increased by 45% to ₱5.46 billion.

Ginebra San Miguel, on the other hand, recorded a "stellar quarter" with revenues and earnings surging to ₱11.34 billion and ₱1.04 billion, respectively.

In addition, San Miguel Foods opened the year on an upbeat note with revenues jumping 9% to ₱36.18 billion on the back of strong demand and more stable pricing across all business segments.

Earnings of San Miguel Foods in the January to March period reached ₱3.39 billion, more than doubled from the same period in 2020.

"As we continue to navigate the pandemic, we remain optimistic about the future and stay focused on driving investments in products and innovate on systems that will better address the needs of Filipinos. We will work hard with greater efficiency and flexibility in order for our country to emerge from this pandemic stronger and more formidable," Ang said.

SMFB shares in the local bourse shed 60 centavos or .92% to finish at ₱64.40 apiece on Wednesday.