SAN Miguel Food and Beverage Inc. (SMFB) on Wednesday reported a modest increase in first-quarter earnings, with gains in its food and spirits units, and the beer segment’s steady performance having helped offset cost pressures from a challenging operating environment.
Net income for January to March rose 2 percent to P11.8 billion from P11.6 billion a year earlier and revenues grew 4 percent to P103.1 billion.
Income from operations increased 3 percent to P15.7 billion, while earnings before interest, taxes, depreciation and amortization rose 4 percent to P20.4 billion.
Margins were steady at 20 percent.
SMFB said demand remained stable across its core segments, although geopolitical tensions and fuel price volatility continued to weigh on costs.
“We cannot control how global conditions will evolve, but we can control how prepared we are,” Chairman Ramon Ang said.
“We will stay disciplined, manage our costs carefully and continue investing across our supply chain.”
The food segment led growth, with revenues rising 7 percent to P49.6 billion and driven by the feeds business and sustained demand for branded products. Net income increased 8 percent to P3.3 billion.
The beer business posted P36.8 billion in revenues, with domestic sales supported by price adjustments amid volume and cost pressures, including higher excise taxes, while net income was P6.2 billion and operating income was steady at P7.9 billion.
International beer operations contributed $68.3 million in revenues, although exports were affected by the ongoing Middle East crisis, SMFB said.
The spirits unit reported a 3-percent increase in revenues to P16.7 billion, with net income at P2.3 billion, supported by brand-building efforts and cost discipline.
SMFB said it would continue investing in its operations and supply chain while maintaining prudent cost management to support long-term growth.
Shares of the company were unchanged at P52.10 each on Wednesday amid a 1.17-percent rise for the benchmark Philippine Stock Exchange index.
