San Miguel Food and Beverage Inc. (SMFB) said its net income was down 30 percent last year to P22.4 billion, from the previous year’s P32.27 billion, as the pandemic slowed down its business and dampened demand for its beer and food products.
The company said consolidated revenues fell 10 percent to P279.3 billion from the previous year’s P310.78 billion. Second half consolidated revenues were up 27 percent to P156.5 billion, from P122.8 billion in the first half, it said.
“While 2020 was extremely challenging, our businesses were able to pivot and deliver significant volume growth for the balance of the year. These encouraging results demonstrate the company’s resilience in the face of the global crisis and positions it for a strong and stable recovery,” company president and CEO Ramon S. Ang said.
Profits for the period were driven by San Miguel Brewery Inc. (SMB) which posted volume growth in the second half following the lifting of liquor bans in various areas of the country.
SMB ended the year with consolidated revenues of P107.9 billion, down by almost a quarter from the previous P142.27 billion. Its performance was backed by company-initiated consumption-generating programs, direct-to-consumer initiatives and cost containment efforts.
Net income for the period fell by a third to P17.5 billion from the previous year’s P27.28 billion.
SMB’s international operations also benefitted from easing of restrictions in the second half of the year. Its Hong Kong, south China, Vietnam and export markets delivered profits better than 2019, the company said.
Liquor maker Ginebra San Miguel Inc. delivered volumes of 38.6 million cases, 8 percent higher than the prior year.
Consolidated revenues for 2020 amounted to P36.2 billion, up by 24 percent from last year’s P29.06 billion.
Ginebra’s net income hit P2.8 billion for the period, up 65 percent from the prior year’s P1.67 billion. The latest figure is the highest level ever registered by the company.
San Miguel Foods ended the year with consolidated revenues of P135.2 billion, 3 percent lower than the previous year’s P139.45 billion. Its earnings before interest, taxes, depreciation and amortization (EBITDA) was 8 percent higher year-on-year at P12.2 billion.
The company did not state its income. Its 2019 income, however, was already low at P3.45 billion, down by 41 percent from the previous P5.88 billion as it faced issues on its poultry division during that year which dragged the entire food unit.
The company said its food unit responded “nimbly” last year to the spike in home consumption and the shift to home-based lifestyles throughout the lockdown, ensuring product availability and accessibility.
Its prepared and packaged food segment benefitted most from the shift delivering a double-digit performance in 2020. This segment also helped mitigate the effects of the softening of certain segments, particularly the protein business, as operations of most of its food service customers were affected by community quarantine restrictions.
“We believe that the worst of the pandemic is over and we look forward to 2021 with optimism. We will continue to adapt to the changing market conditions and leverage on lessons learned. Soon, we will reemerge stronger and more resilient on the path to long-term profitable growth,” Ang said.