GINEBRA San Miguel, Inc. (GSMI) plans new activities to increase the consumption of its products during the summer months, it said on Thursday, after reporting its first-quarter results.
“GSMI has lined up activities such as the Ginumanfest concerts featuring the country’s top talents, bands, and GSMI brand ambassadors,” it said in a statement.
The company will also hold its annual World Gin Day, a month-long celebration that will run through June.
“These activities are part of GSMI’s countdown to its flagship brand’s 190 years celebration in 2024,” it added.
During the first quarter, the company reported an 80.7% rise in consolidated net income to P2.53 billion from about P1.40 billion.
“[This was due to a] P1.1 billion one-time income from the transfer of GSMI’s right on Don Papa to a wholly owned subsidiary, Ginebra San Miguel,” said Senior Vice-President and General Manager Emmanuel B. Macalalag during the company’s shareholders’ meeting.
Mr. Macalalag added that the company’s operating income declined by 9% to P1.6 billion due to due to lower volumes and higher input costs in the first two months of the year, which reflected the temporary impact of price increases in February.
“Launching our Ngiting Instanalo consumer promo helped March volumes rebound quickly narrowing down the deficit to 5% at the end of the first-quarter closing at 11.5-million cases,” he said.
The company’s first-quarter top line rose by 3% to P12.95 billion from P12.62 billion. Gross profit declined by 5.6% to P3.04 billion from P3.22 billion due to an increase in raw material costs and excise tax rates. This was partly offset by price increases.
Cost of sales reached P9.91 billion, up 5.4% from about P9.40 billion the prior year. Expenses for selling and marketing fell by 4.9% to P792.53 million from P833.53 million.
“Despite the various challenges the industry has faced these past couple of years, GSMI has remained resilient and has consistently delivered excellent results,” said Ramon S. Ang, GSMI president and chief executive officer. “We’re off to a good start this year and we look forward to implementing programs that will excite our markets and drive our full-year performance.”
The company is the maker of Ginebra San Miguel gin and other distilled spirits including GSM Blue Light Gin, GSM Blue Mojito, GSM Blue Margarita, GSM Blue Gin Pomelo, Ginebra San Miguel Premium Gin, 1834 Premium Distilled Gin, Antonov Vodka, Añejo Gold Rum, Primera Light Brandy, and Chinese wine Vino Kulafu.
On Thursday, its shares fell by 0.35% or P0.50 to end at P141.50 apiece. — Adrian H. Halili