San Miguel Food and Beverage : & Beverage 1st Half Net Profit Fell More Than 50%

By P.R. Venkat

San Miguel Food & Beverage Inc.'s net profit fell more than 50% in the first half as Covid-19 lockdowns dealt severe hits to various business units.

Net profit was 7.34 billion Philippine pesos ($149.5 million), mainly weighed down by a fall in sales at its beer business, the company said Thursday.

"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," it said.

Consolidated revenue decreased 19% to PHP122.82 billion.

The company said demand is now ticking back up due to the easing of Covid-19 restrictions.

"Notwithstanding the obstacles of the first half of the year, SMFB remains fundamentally sound with a strong balance sheet, relatively light debt-service obligations, and sufficient liquidity," the company said.

SMFB said it has also cut its planned expenses for the year without sacrificing long-term investments.

Write to P.R. Venkat at [e-mail]