San Miguel Food and Beverage Inc. reported a 16 percent profit increase in the first quarter, which analysts expect to likely continue in the next few quarters due to sustained demand.
The company, a subsidiary of the SMC conglomerate, registered a net income of P11.6 billion in the quarter, up from P10 billion a year earlier.
Revenues for the period rose 4 percent to P98.9 billion from P95.09 billion.
Luis Limlingan, managing director at Regina Capital and Development Corp., said this trend is likely to persist in the next few quarters, given the backdrop of slowing inflation.
Limlingan said the profit results reflect the food manufacturing industry’s outlook this year.
“If we look further into it, definitely there is improvement in demand,” he said.
“With recent reports of lower inflation, this growth may be sustained or further grow as demand rises,” Limlingan said.
SMFB, in a statement issued on May 7, said from a per-segment perspective, the food business posted an 83 percent increase in net income to P3 billion from P1.64 billion. Revenues grew 8 percent to P46.3 billion from P42.87 billion.
It said the business posted growth in the “high-teens” in poultry and steady performance across Purefoods processed meats, Magnolia dairy and coffee, and flour.
The beer business under San Miguel Brewery Inc. posted a profit of P6.6 billion, over sales of P36.3 billion. The company provided no comparative figures.
SMFB said that despite tempered market conditions, the beer business “sustained healthy earnings through improved operating performance.”
The spirits business under Ginebra San Miguel Inc. posted an 11 percent increase in net income to P2.1 billion from P1.89 billion. Revenues grew 8 percent to P16.3 billion from P15.09 billion, supported by sustained consumer demand and efforts to reach a broader base of customers.
Ramon Ang, chairman of SMFB, said the results “reflect the strength of our diversified portfolio and our continued focus on execution.”
Ang expressed optimism for the rest of the year, given the company’s “continued investments in key growth areas, from expanding production capacities to strengthening distribution networks, designed to meet the evolving needs of the Filipino consumer.”
