San Miguel Foods Doubles Operating Income To P29.28B

San Miguel Food and Beverage, Inc. (SMFB) delivered solid financial results in the first six months of 2021 driven by stronger operating performance across all divisions and reflecting its ability to adapt to the challenges of the COVID-19 pandemic.

Photo Insert: The San Miguel Head Office in Mandaluyong

SMFB recorded consolidated revenues of P146.79 billion, up 20% from the same period last year. EBITDA was at P29.28 billion, up 66% from the same period in 2020, representing margins of over 20%.

Operating income, meanwhile, more than doubled to P 23.04 billion, driven by improvements in volumes and selling prices across the divisions, as well as continued group-wide cost-containment efforts and operational efficiencies.

As a result, first-half consolidated net income of P17.36 billion was up 137%, surpassing pre-pandemic profits in the first half of 2019.

“Our performance in the first half reflects the agility and adaptability of our food and beverage businesses, in the face of unprecedented challenges brought about by COVID-19. As the situation continues to evolve, the flexibility and resilience we developed this past year will enable us to move forward and pivot quickly as needed,” said SMFB president and CEO Ramon S. Ang.

The Food Group delivered a stellar business performance in the first half of the year. Consolidated revenues rose 11% to P72.24 billion, primarily driven by its Protein and Animal Nutrition businesses, which posted double-digit volume growth.

Protein revenues climbed 20% during the period due to strong demand for poultry products through retail channels, including community resellers, and the recovery of foodservice accounts. The segment also benefited from stable poultry supply and favorable prices.

Finally, core products within the Prepared and Packaged Food and Flour portfolio posted good volumes as they continued to be top-of-mind, essential items for consumers nationwide.

The Food group’s consolidated EBITDA doubled to P11.44 billion while operating income increased more than three-fold to P8.36 billion on higher gross profit and lower selling, general, and administrative expenses.

The Beer business registered a rebound as consolidated sales volumes improved 15% versus last year, with the easing of quarantine restrictions and lifting of liquor bans in its markets.

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