San Miguel Food and Beverage Inc. on Wednesday said its income fell 9 percent to P30.6 billion in January to September from the previous year’s P33.69 billion as high inflation, elevated commodity prices and slower economic growth put a strain on household budgets.
Consolidated sales managed to rise by a mere 2 percent to P309.6 billion from the previous year’s P302.92 billion.
‘This has been a challenging year so far for Filipino consumers, so we continue to make every effort to keep our products affordable while managing our costs carefully,’ Ramon S. Ang, the company’s chairman, said.
‘Our brands remain strong and our balance sheet has strengthened further. We will continue to invest in capacity and in our brands so we are ready when demand picks up. We look forward to a strong holiday season, traditionally our busiest time of the year.’
San Miguel Foods posted sales of P151.4 billion, up 6 percent, driven by strong performances across its animal nutrition and health, processed meats and dairy businesses.
The animal nutrition and health business led growth, with sales increasing 27 percent supported by sustained demand across its product portfolio. Growth in the company’s branded food businesses also helped offset softer market conditions in its protein and flour operations.
Operating income reached P11.7 billion, while net income amounted to P8.3 billion, lower by 9 percent and 7 percent, respectively, compared to the previous year.
Profitability was affected by lower poultry prices and higher operating costs, including fuel, raw materials, and foreign exchange-related pressures.
San Miguel Brewery Inc. posted consolidated sales of P109.2 billion, 1 percent lower from the previous year, as softer consumer spending affected sales volumes. Domestic beer sales reached P96.7 billion.
International operations generated $206.9 million, 5 percent lower, as the conflict in the Middle East affected volumes in the region. Beer operating income was P20.5 billion and net income P16.1 billion, both 14 percent lower.
Ginebra San Miguel Inc. maintained earnings growth despite softer sales volumes, with revenue increasing 1 percent to P48.9 billion. Operating income rose 7 percent to P8 billion and net income 3 percent to P6.5 billion, supported by continued cost management and operational efficiency.