SMFB prepares to weather challenges, remains confident in sustained growth

MANILA, Philippines — San Miguel Food and Beverage Inc. (SMFB) remains confident in its growth trajectory as it prepares to weather challenges brought about by geopolitical tensions, fuel price volatility and other cost pressures.

SMFB chief finance officer Monica Ang-Mercado said that with an environment expected to remain dynamic, the company’s success would depend on staying focused, executing consistently, and adapting when necessary.

“Looking ahead, the fundamentals are sound. We have strong brands, an extensive distribution network  and integrated operations that give us a solid platform to keep growing,” Ang-Mercado said during the company’s annual stockholders’ meeting.

“There is still much to do, and we are the first to say so. But the path is clear – build on our strengths, scale our leadership the right way, the way that is sustainable and enduring. We are confident in where we are headed and prouder still of the people who will take us there,” she said.

During the first quarter, earnings of SMFB inched up by two percent to P11.8 billion, while revenue increased by four percent to P103.1 billion.

Ang-Mercado said SMFB’s first-quarter performance was slightly affected by the Middle East conflict, tougher competition and more discerning and cost-conscious consumers.

“But we have faced difficult times before when the pandemic tested us with tighter household budgets and changing consumer habits,” she said.

To weather the next quarters, Ang-Mercado said SMFB would strengthen its well-loved brands, push innovation and manufacturing excellence and further improve its supply chains.

“In the end, this is about more than profit; it is about the farmers and suppliers who grow with us, the small store owners who sell our products, and the communities in which we operate, and the millions of Filipino families who place San Miguel on their table every day,” Ang-Mercado said.

“When the company does well, they and our employees should do well too. That responsibility extends to how we grow or scale,” she said.

For its beer business, SMFB chief operating officer for beer, Carlos Antonio Berba, said the company believes cost pressures will persist in the near future and affect most industries.

Still, he said SMFB is confident the business could sustain moderate growth and consistent profitability in the long term, with the company focusing on disciplined planning and execution across sales and distribution.

The spirits business, meanwhile, will focus on improving availability, strengthening trade support and keeping its brands visible and relevant in local occasions and community gatherings.

“These efforts will help us reach more consumers and support the long-term growth of Ginebra San Miguel and our other spirits brands. Luzon remains the core market for Ginebra San Miguel, and we recognize also the opportunities in Visayas and Mindanao,”  SMFB chief operating officer for spirits Cynthia Baroy said.

In the food segment, SMFB chief operating officer for food Emmanuel Macalalag said resilience is tested on a day-to-day basis, as the company navigates many moving parts, including raw materials, production, cold chain distribution, trade requirements and changing consumer needs.

“Our focus is to stay close to the market, keep operations disciplined and make sure our products are available where they are needed,” he said.

Macalalag said, however, that SMFB’s food business has the advantage of a very broad portfolio.

“When one part of the business is under pressure, other categories can provide balance. That gives us more flexibility in managing through changes in demand, costs, and supply conditions,” he said.