Ginebra San Miguel operating income down 30% in Q1

Ginebra San Miguel Inc. (GSMI), the hard liquor unit of San Miguel Corp. (SMC), on Tuesday reported a 30% drop in its operating income for the first quarter, reflecting the impact of the lockdowns imposed to stop the spread of the coronavirus disease.

In an emailed statement, GSMI said its operating income fell to P686 million, while consolidated revenues dropped to P7.45 billion and gross contribution to P1.8 billion.

To recall, several local government units (LGUs) imposed alcohol bans in the first quarter, in line with the enhanced community quarantine (ECQ) which was in place until May 15.

"Throughout the quarantine period, GSMI was the first to repurpose its facilities, amid the liquor ban, to produce disinfectant alcohol and meet a pressing national need. These alcohol were donated for free to critical health facilities and local government units nationwide," said SMC president and chief operating officer Ramon Ang.

Facilities of GSMI boosted its production during the quarantine period to deliver 100,000 liters of ethyl acohol per day.

"We are happy to report that we have broken records in 2019. However, 2020 presents a different challenge for all of us. The whole world was caught unprepared to deal with a crisis of this magnitude," said Ang.

For 2019, GSMI posted a record net income of P1.67 billion, up 59% from the previous year. Consolidated revenues also grew 17% to P29 billion, while operating income closed at P2.9 billion.

"This pandemic will cast a long shadow, but we are optimistic as we continue to be grounded in our purpose of making lives better for the communities we serve," said Ang.

"We’ve been through many more challenging times in the past and we believe we will come out of this crisis stronger, better. We will beat this pandemic together," he added. -NB, GMA News