SMFB Reports Double Digit Sales and Profit Growth
December 14, 2018
San Miguel Food and Beverage, Inc. (FB:PM), the food and beverage flagship of San Miguel Corporation, continued its robust growth in the nine-month period ended September 30, 2018.
Consolidated sales increased 15% to P206.6 billion with revenue growth accelerating across San Miguel Brewery Inc. (SMB), Ginebra San Miguel Inc. (GSMI) and its Food Group. Consolidated income from operations and net income both grew by 17% to P34.0 billion and P22.9 billion, respectively.
“Strong growth and results across all businesses reflect the successful execution of our strategies. With the strength of our brands, we are able to maintain good volume growth and margins. We remain focused on building our businesses for the long term and deliver high quality growth.” FB President and Chief Executive Officer Ramon S. Ang said.
SMB posted revenue growth of 16% amounting to P93.4 billion driven by robust volume. Domestic volume increased 11% year over year with Red Horse and San Miguel Pale Pilsen maintaining their position as the Company’s top selling brands.
SMB propelled growth through the implementation of new campaigns and consumer trade programs that further strengthened the equity of its brands. Operating income for the period rose 21% to P25.9 billion.
GSMI likewise sustained its growth momentum, posting a 13% volume growth compared to last year, driven by flagship brands Ginebra San Miguel and Vino Kulafu. The growth was backed by its nationwide “Ginebra Ako” campaign and other consumer promotions.
As a result, GSMI’s revenues grew by 17% to P17.9 billion while operating income amounted to P1.3 billion, 52% higher than the previous year.
The Food Group delivered consolidated revenues of P95.3 billion, 13% higher than last year, primarily on strong performance of its Animal Nutrition & Health, Protein, and Prepared & Packaged Food businesses. Operating income amounted to P6.8 billion.
“With the completion of our consolidation and the creation of a stronger consumer platform, we will further expand our product offerings, reinforce our presence and drive scale through synergies, while providing better value and profits to all our stakeholders”, said Ang.