SMFB Q1 income climbs 2% on food, spirits growth

SAN MIGUEL Food and Beverage, Inc. (SMFB) posted a 2% increase in first-quarter (Q1) net income to P11.8 billion, driven by growth in its food and spirits businesses despite flat beer revenues and continued cost pressures.

In a statement on Wednesday, the company said revenues for the January-to-March period rose 4% to P103.1 billion, while operating income increased 3% to P15.7 billion.

“We cannot control how global conditions will evolve, but we can control how prepared we are. We will stay disciplined, manage our costs carefully, and continue investing across our supply chain to help ensure a stable and reliable food supply, especially in this environment,” SMFB Chairman Ramon S. Ang said.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 4% to P20.4 billion, while EBITDA margin remained unchanged at 20%.

The company said geopolitical tensions, fuel price swings, and other cost pressures continued to affect the operating environment.

The food segment led profit growth during the quarter, with net income rising 8% to P3.3 billion.

Operating income for the segment increased 10% to P4.9 billion, while revenues grew 7% to P49.6 billion, driven by improved feeds performance and steady demand for Magnolia dairy, coZee products, and Purefoods meat products.

Beer segment revenues were flat at P36.8 billion.

Domestic beer revenues reached P32.7 billion as price increases helped offset weaker volumes and higher costs, including excise taxes.

Operating income for the beer business was unchanged at P7.9 billion, while net income stood at P6.2 billion.

International beer revenues reached $68.3 million, with exports affected by disruptions linked to the Middle East crisis.

The spirits business posted a 3% increase in revenues to P16.7 billion. Operating income reached P2.8 billion, while net income stood at P2.3 billion.

At the stock exchange on Wednesday, SMFB shares were unchanged at P52.10 apiece. — Alexandria Grace C. Magno