San Miguel Food and Beverage Inc. (SMFB) expects business to further improve in the latter part of the year.
Francisco Alejo III, SMFB chief operating officer, said the company expects prices of raw materials to improve for the balance of the year.
“In June alone, several of our raw materials are already cheaper than the previous months. We expect these better prices to continue for the balance of the year, resulting in a significantly better profitability for our balance of the year as compared to the first half,” Alejo said at the company’s shareholders meeting Wednesday.
Alejo said SMFB’s newly-built plants for feeds, poultry processing, and processed meats are “delivering efficiencies that result in better yield and margins.”
“As the market opens, we expect better sales and increased consumer spending. Things are actually looking up for the food group. We would like to assure the stockholders have a better second half, and a good year for 2023,” he said.
SMFB closed the first quarter of the year with an 8 percent increase in profit to P9.9 billion from P9.16 billion in the same period in 2022. Revenues grew 12 percent to P93.2 billion from P83.21 billion.
Consolidated earnings before interest tax depreciation and amortization (EBITDA) was up 10 percent to P17.2 billion, with EBITDA margins at 19 percent.
SMFB said its beer business posted a 29-percent increase in sales at P38.3 billion with both domestic and international operations posting positive sales.
The spirits business posted a 3- percent uptick to P12.9 billion.
SMFB’s food business improved by 3 percent to P41.9 billion, driven by strategic pricing across all its segments. Almost all food segments delivered higher revenue growth.
