SMB revenues up 10% to P142.3B in 2019, earnings reach P27.3B

San Miguel Brewery Inc. (SMBI) is eyeing a sustainable recovery from a slow first quarter, brought on by the impact of the Covid-19 global pandemic, which virtually shut down all economic activity and resulted in liquor bans nationwide.

This, after it reported strong full-year results for 2019, driven by higher consumption, favorable economic conditions, and the implementation of strategic campaigns and demand-generating programs.

At its annual stockholders’ meeting, held via video conference yesterday, the company reported consolidated sales revenues of P142.3 billion, 10.1% higher than the full-year 2018. Operating income grew 9.7% to P38.7 billion, which resulted in a 27.2% operating margin. Net income increased 14.5% to P27.3 billion.

Better operational capability, cost efficiencies, and improved productivity allowed SMB to meet volume demand.

Both domestic and overseas volumes for its top brands, San Miguel Pale Pilsen, Red Horse, San Mig Light, and San Miguel Flavored Beers, exceeded year-ago levels.

However, the implementation of the enhanced community quarantine (EQC) in March–which brought most economic activities to a halt and also brought on liquor bans in cities and provinces nationwide–as well as an increase in excise taxes at the start of the year, slowed SMB’s momentum in the first quarter of 2020.

Consolidated sales revenues ended at P28.4 billion; operating income was at P5.4 billion, and net income closed at P3.8 billion.

Nevertheless, SMB said it was already implementing programs to recover from the impact of the pandemic.

These include adjustments in its operations to adapt to the new environment and shifts in consumption patterns, strengthening demand for beer products through increased product visibility and availability in the right channels, and implementing focused sales programs.