MANILA — San Miguel Corporation’s (SMC) spirits business, Ginebra San Miguel Inc. (GSMI), sustained its growth momentum in the first nine months of the year as it delivered higher revenues and profits despite prevailing difficult operating and economic conditions.
GSMI posted revenues amounting to P34.5 billion, 12% higher than in the comparative period last year, on the back of an 8% increase in volumes.
The business felt the full impact of the global effects of the war between Russia and Ukraine and the weakening of the peso versus the US dollar in the third quarter, which brought the costs of fuel, alcohol, and other material inputs, up.
Still, volumes remained high, pushed by determined on-ground selling efforts and effective marketing programs for its flagship gin, Ginebra San Miguel, and other major brands, including GSM Blue and Vino Kulafu.
Cost containment measures and improved efficiencies also helped GSMI manage continuing challenges, resulting in a 12% increase in operating income to P4.6 billion, compared to the same period last year.
As a result, net income remained robust at P3.4 billion, 7% higher than in the previous year.
“It has been a particularly challenging period, with the conflict in Ukraine continuing to have wide-ranging impacts on economies, companies, suppliers, workers, and employees alike. Fortunately, GSMI has been able to adapt to changing conditions, especially on the ground, as it continues to work to reach and serve its target markets,” said SMC President Ramon S. Ang.
“We’re optimistic that the programs that our GSMI team has put in place to preserve and strengthen their market leadership will continue to carry the business through difficult times, and we look forward to its continued solid performance–particularly this last quarter, which is usually a strong quarter for most businesses owing to the holidays. (ai/mtvn)