SMB earnings rise 20% to P19.4 B

San Miguel Brewery Inc. (SMB), San Miguel Corporation’s privately-held brewing unit, reported a 20.2 percent hike in consolidated net income to P19.4 billion in the first nine months of 2023 versus the same period last year.

In a statement, the firm said its performance was driven mainly by higher volumes from both domestic and international operations, and a more positive business environment.

SMB’s consolidated revenues grew 9.4 percent to P108.3 billion in the first three quarter of 2023 from P99 billion in the same period last year. Consolidated operating income, likewise, increased by 8.5 percent to P24.1 billion.

The firm said its domestic beer volumes expanded by 4.3 percent during the period, driven by dynamic brand campaigns, targeted sales programs and a sustained economic recovery that saw more markets reopening amidst the backdrop of rising inflation and living costs.

On the international front, SMB reported an 8.9 percent increase in sales volume, bolstered by the performance of its Export business along with notable growth in the Hong Kong and South China markets.

For the first semester, SMB reported a 26 percent growth in consolidated net income to P13.5 billion year-on-year as it saw a robust 14 percent growth in consolidated revenues in the first semester, registering P74.1 billion in sales compared to P65 billion in the same period last year.

The company attributed the growth to the positive sales performance of both its domestic and international operations, combined with a more favorable business environment.

“We continue to see strong demand for our beer products. Through solid marketing strategies and a portfolio mix that gives consumers greater choice, we are able to keep our brands relevant and adapt to changing consumer needs and preferences,” SMC President and CEO Ramon S. Ang said.

SMB posted a consolidated operating income of P16.4 billion, up by 12 percent compared to the same six-month period last the year.

The firm’s domestic beer volumes grew 9 percent, boosted by new brand campaigns and offtake-generating programs. International operations meanwhile posted a 16 percent increase in sales volume from its exports business and Hong Kong and Thailand operations.