Mahou San Miguel earned 2.3 million euros in 2020, despite having reduced its sales by 10.5% to 1,252 million euros due to the pandemic. The Spanish brewery had a very good year, having obtained 170 million profit in 2019, so the fall is brutal.
“This result, far removed from those recorded in previous years, has been a consequence of the impact of the health situation and the measures implemented to help alleviate it, such as closures and restrictions in hotel establishments,” the company pointed out.
Beer consumption is closely linked to hospitality and tourism. Until 2019, 55% of Mahou’s sales were in the hospitality channel. In 2020 this percentage has dropped to 40%. Home sales, which increased 10%, are not offsetting. The company produced 8.2% less than in 2019: in total, 17.7 million hectoliters, of which 13.5 are beer and 4.5 are mineral water.
65,000 conditioned terraces
Alberto Rodríguez-Toquero, CEO, reiterated in a meeting with the media that the priority for 2020 has been to help the hospitality industry. “We have invested more than 200 million euros, the highest figure for Mahou San Miguel in its history in this regard,” he explained.
The grants include measures to reactivate their businesses, such as extraordinary product delivery, the expansion of their terraces, support materials, initiatives to attract traffic, as well as the expansion of grants and loans. Specifically and according to its data, Mahou conditioned the terraces of more than 65,000 establishments throughout Spain and made extraordinary product deliveries worth 75 million euros.
Regarding 2021, Rodríguez-Toquero has acknowledged that it is “difficult” to make forecasts of when the 2019 data will be recovered. “We are not in a race against time to return to that profitability in the short term, but rather to bring this company to its better version, that if it is in 2023, better “, has indicated. “2021 will be better than 2020, because we are better and everything points to it.” For now, he said, in the first months of the year sales have not risen (-9% compared to 2019) due to restrictions and the January storm.
On the other hand, he recalled that Mahou San Miguel has an “international vocation”, so after his recent departure from India he does not rule out new purchases. “Mahou San Miguel has a vocation to continue reinvesting in the business and we have not stopped looking for opportunities that will be focused on the United States, where our experience is very satisfactory, but pending any opportunity that may arise in the Spanish market.”