San Miguel Food and Beverage, Inc. (SMFB) on Wednesday, Aug. 5, reported that consolidated revenues declined by 19 percent to P122.82 billion in the first half, reflecting the impact of lockdowns caused by the Covid-19 pandemic.

In a statement, the company said consolidated earnings before interest, tax, depreciation, amortization (EBITDA) amounted to P17.67 billion in the first half, P8.89 billion lower than last year’s primarily because of the P11.49-billion decline from the beer business. However, the food and spirits businesses partly made up for the loss.

SMFB reported consolidated operating income of P11.36 billion and net income of P7.34 billion.

“As the pandemic continues to affect our everyday lives, we keep in mind that this is only temporary. We remain steadfast in our commitment to ensure food sufficiency and help and provide opportunities to the most vulnerable communities,” said Ramon Ang, SMFB president and chief executive officer.

The decline in revenue started from mid-March to mid-May, when restrictions related to the enhanced community quarantine took effect. Liquor bans were imposed across key cities, food service and retail establishments were closed, and movement and delivery of goods were limited due to checkpoints, the company noted.

SMFB said it opened non-traditional selling channels such as mobile stores, community reselling in barangays and villages, as well as online ordering platforms and home deliveries, to address the surge in consumer demand and ensure the availability of food.

Consumer demand for canned and refrigerated meats soared as in-home dining became the norm. Sales of dairy products also grew by double-digits, SMFB said.

The flour segment reported a slight growth in revenues because of the increased demand for breads by households and the resumption of operations of institutional customers, it said.

For the beer business, consolidated revenues amounted to P42.79 billion in the first half, 39 percent lower compared with the same period last year on lower domestic volumes as a result of the liquor bans implemented in mid-March. EBITDA was cut by about half to P9.68 billion.

Ginebra San Miguel’s consolidated revenues however, were slightly higher at P14.84 billion, while profits rose 28 percent to P1.26 billion. J. I. Zapata