Strong Beer Demand Boosts SMB ’22 Profits
San Miguel Brewery Inc. (SMB), the brewing company of conglomerate San Miguel Corp., said its revenue rose 6% last year to 21.8 billion pesos from 20.44 billion pesos the previous year.
The company attributed this to its increased focus on consumer needs through innovation, customer engagement programs and increased marketing support in appropriate channels supported by favorable market conditions.
Sales revenue rose 17 percent to 136.2 billion pesos from 116.28 billion pesos the previous year, while operating income rose 9 percent to 29.5 billion pesos from 26.91 billion pesos the previous year.
“This was driven by strong volume growth, a favorable brand mix, and the implementation of cost-effectiveness initiatives that resulted in increased sales volumes and profits both domestically and internationally,” the company said in a statement.
To further boost consumer demand, in March, the company launched San Mig Flavored Water, a refreshing unsweetened non-carbonated drink, and San Mig Hard Seltzer, made from 5% alcohol carbonated water that contains natural, sugar-free, zero-sugar flavors. preservatives
Last December, SMB launched its newest product, San Miguel Cerveza Blanca, a wheat beer aimed at the upscale market.
The company also innovated in packaging with the release of San Mig Light Limited Edition cans in July, San Miguel Flavored Beer Hallyu Fun cans in September, and San Miguel Pale Pilsen Play cans in October.
San Miguel’s international operations also posted strong growth driven by increased volumes, increased operational efficiency and prudent cost management.
For its international markets, it has used its portfolio of specialty beers. Indonesia continued its growth in volumes and earnings growth, while Thailand benefited from strong specialty beers and premium SME brands, resulting in increased sales.
Meanwhile, SMB’s export operations have shown higher volumes and profits for the third year in a row, especially in markets such as the United Arab Emirates, Qatar, the United States, Bahrain, as well as emerging markets in Asia and Africa.