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San Miguel Food and Beverage income down 20% in Q1
By JON VIKTOR D. CABUENAS, GMA News San Miguel Food and Beverage Inc. (SMFB) on Thursday posted a 20% decline in its bottom line in the first three months of the year, reflecting the impact of the coronavirus disease.
In an emailed statement, SMFB said both its consolidated operating income and consolidated net income both declined by 20% to P8.6 billion, and P5.8 billion respectively.
Consolidated revenues likewise fell 9% to P69 billion, which the company attributed to the impact of lockdowns to curb the spread of COVID-19.
Revenues from the beer division -- with flagships brands San Miguel Pale Pilsen and Ginebra San Miguel -- reported an 18% decline to P28.4 billion.
"Volumes for SMB were up single digits in the first two months of the year with March 2020 volumes experiencing a drop given the ECQ and the resulting liquor bans," the company said.
The company said its Spirits Division had a "good start" for the first two months of the year with sales volumes 15% higher than the same period last year, but ended the quarter 14% less year-over-year, bringing first-quarter revenues down 10% to P7.5 billion.
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Liquor bans were implemented in several areas across the country, alongside the enhanced community quarantine set in place in Metro Manila and other "high-risk" areas.
Such areas have been on lockdown since March 17. A modified enhanced community quarantine (MECQ) has been placed from May 15 to last until May 31, paving the way for more businesses to reopen.
San Miguel earlier said its food facilities would operate 24/7 to ensure food supply amid the quarantine.
"During these difficult times, we remain steadfast in our commitment to ensure that there is enough food for every Filipino. It is our goal to provide nourishment and safety especially to the most vulnerable communities," said SMFB president and chief operating officer Ramon Ang.
"The road to recovery may be long. However, over the last 130 years, we successfully overcame many challenges. We remain confident that with our strong fundamentals and ability to deliver good and affordable products to our consumers, we will overcome this once again," he added.—AOL, GMA News