SMFB first-quarter earnings rise 2% to P11.8B

San Miguel Food and Beverage, Inc. (SMFB) posted a modest increase in first-quarter earnings. Gains from its food and spirits businesses offset a tougher operating environment marked by geopolitical tensions and rising costs.

In a disclosure on Wednesday, SMFB said net income climbed 2 percent to P11.8 billion in the January-to-March period.

Consolidated revenue grew 4 percent to P103.1 billion. Income from operations rose 3 percent to P15.7 billion.

Earnings before interest, taxes, depreciation and amortization increased 4 percent to P20.4 billion.

The food and beverage giant said demand across its core categories remained stable despite fuel price volatility and other cost pressures.

“We cannot control how global conditions will evolve, but we can control how prepared we are,” SMFB chair Ramon Ang said.

“We will stay disciplined, manage our costs carefully and continue investing across our supply chain to help ensure a stable and reliable food supply,” Ang added.

SMFB’s food business delivered a 7-percent increase in revenue to P49.6 billion. This was attributed to its feeds segment and sustained demand for branded products such as Magnolia dairy and coffee products as well as Purefoods meats.

Operating income from the food unit rose 10 percent to P4.9 billion, while net income climbed 8 percent to P3.3 billion.

Meanwhile, the beer business posted P36.8 billion in revenue. Domestic sales reached P32.7 billion as price adjustments helped offset volume and cost pressures, including higher excise taxes.

See Also

Gov’t budget gap narrowed in February

Beer operating income stayed at P7.9 billion, while net income reached P6.2 billion, thanks to cost controls and brand investments.

SMFB said its beer business continued supporting flagship brands such as San Miguel Pale Pilsen and Red Horse Beer, alongside newer products like San Miguel Mango Yuzu.

International beer operations contributed $68.3 million in revenue despite weaker export sales caused by the ongoing Middle East crisis.

The spirits business also posted steady growth, with revenue rising 3 percent to P16.7 billion. Net income reached P2.3 billion, backed by brand-building initiatives and disciplined cost management.

SMFB said it would continue investing in its operations and supply chain while maintaining cost discipline to support long-term growth.