Mahou San Miguel’s annual profits reach €170m

Spanish beverage giant San Miguel raked in more than €170 million (£147 million) in pre-tax profits last year, according to the firm’s annual results.

Alberto Rodriguez-Toquero, CEO of Mahou San Miguel. (Photo: Mahou San Miguel)

Mahou San Miguel, which owns lager brands Mahou and San Miguel, made just over €260 billion in net profits in 2018.

The brewer also “significantly increased” its investment within the business by 31.5%, to €119.8 million, which has been allocated to update and rennovate its production centres in Spain and overseas.

San Miguel’s total sales also set new records, reaching 18.3 million hectolitres, an increase of 10.2%, of which 14.1 million came from beer and 4.2 million from flavoured and functional mineral water.

Alberto Rodriguez-Toquero, Mahou San Miguel’s CEO, said the company’s growth last year “demonstrated our capacity to anticipate market needs, leading and driving the category through innovation, premiumisation and generation of new experiences.”

Last year, the drinks giant invested €25.4 million in product innovation, up 23% from 2017, and launched three new products to the market; Mahou Maestra Dunkel, San Miguel Radler, and Mahou Cinco Estrellas Radler. Just under 5% of its total net sales came from innovation, compared to 3.8% in 2017.

The company has also invested in craft beer brands. At the end of 2017, Mahou San Miguel bought a 30% stake in Colorado-based craft brewer Avery Brewing as part of its ongoing strategy to position itself as the leading Spanish producer in the craft beer sector, and strengthen its presence in the US.