Business

San Miguel Food and Beverage H1 income cut into half due to COVID-19

The food and beverage arm of conglomerate San Miguel Food and Beverage Inc. reported a net income of P7.34 billion in the first six months of the year, a sharp decline from the P14.7 billion recorded in the same period a year ago as the coronavirus-induced lockdowns took a toll on its bottomline.

San Miguel Food and Beverage Inc. (SMFB) said consolidated revenues decreased by 19% to P122.82 as the full impact of the COVID-19 pandemic weighed on sales in the second quarter, especially for its beer and spirits businesses.

“The effect of the restrictions that accompanied the ECQ was most pronounced from mid-March to mid-May. During the period, liquor bans were imposed across key cities, there were closures of food service and retail establishments, as well as limitations on movement and delivery of goods to the trade due to checkpoints,” SMFB said in a statement.

To counter trade limitations, the food division implemented non-traditional selling channels as early as the start of the ECQ to address the surge in consumer demand. These include the rollout of mobile stores, community reselling in barangays and villages, and the utilization of online ordering platforms and home deliveries.

As a result, net income of San Miguel Foods more than doubled to P1.34 billion on P65.18 billion in revenues.

As in-home dining became the norm, consumer demand for canned meats such as corned beef and SPAM, as well as refrigerated meats soared.

Sales of dairy products, likewise, grew by double-digits.

The flour segment registered a slight increase in revenues, driven by the strong demand for breads and the resumption of operations of institutional customers.

“As the pandemic continues to affect our everyday lives, we keep in mind that this is only temporary. We remain steadfast in our commitment to ensure food sufficiency and help and provide opportunities to the most vulnerable communities,” said Ramon S. Ang, president and CEO of SMFB.

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