San Miguel Food and Beverage, Inc. Reported P10 Billion in Net Income in Q12024, Up 1%

Driven by higher sales in its Food and Spirits businesses, San Miguel Food and Beverage Inc. (SMFB) reported robust financial results for the first quarter of 2024, with consolidated operating income up 13% to P13.1 billion.

Consolidated revenues grew 2% to P95.4 billion compared to the previous year, while net income rose 1% to P10 billion.

“Our solid performance in the first quarter demonstrates our strategic resilience and ability to adapt in a complex market landscape. We remain committed to leveraging our strengths to address challenges and continue delivering exceptional value to our stakeholders,” said Ramon S. Ang, President and CEO of SMFB.
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The food division had a successful first quarter of the year, maintaining top-line growth and generating substantial profits. 

Due to increased volumes in the majority of the categories, consolidated sales for the period totaled P43 billion, 2% more than the previous year. Operating income for the food industry increased by 78% to P2.7 billion, driven by better gross profits as important raw material costs declined and company-owned facility efficiencies increased.

Throughout the time, the segments that drove top-line growth were processed meats, dairy, and coffee. Strong sales of Tender Juicy hotdogs, Purefoods luncheon meat, and corned beef, among other products, helped to drive a 10% increase in processed meat revenue. In a similar vein, larger volumes were delivered by the dairy and coffee divisions.
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Due to a steady supply of chicken, the businesses involved in poultry and animal nutrition and health were able to sustain their revenue levels from the previous year. Low chicken prices caused by an inflow of imported chicken and the lingering effects of African Swine Fever on hog feeds were countered by volume gains in poultry and high performance from free-range fowl feeds.

Strong first-quarter results were also reported by the Spirits business. Its main brands' strength and the supply chain's gradual improvements over time helped to safeguard volumes and profitability.
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Consequently, a 17% increase in revenues was fueled by an 8% rise in volumes and better selling prices. Operating income increased to P2.3 billion, or 40%.
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Due to lower volume, the beer business reported consolidated revenues of P37.4 billion, which is 3% less than the same period last year. Trade increased during the first quarter of 2023 in anticipation of a price hike that would take effect in March of that year.
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Due to changes in the market mix, its foreign beer sector reported a modest fall in volumes. Global San Miguel brands, on the other hand, grew 4% in the first quarter of the year and kept delivering solid volumes. The beer business's consolidated operational income dropped by 4% to P8.1 billion.