San Miguel income down 19% in Q1

MANILA, Philippines — Diversified conglomerate San Miguel Corp. (SMC) saw its net income drop by 19 percent in the first quarter to P13.9 billion.

Consolidated income from operations, however, jumped 25 percent year-on-year to P40.1 billion while consolidated recurring net income improved three percent to P13.9 billion during the quarter.

SMC’s consolidated revenues stood at P316.8 billion,  up 57 percent from the same period last year on the back of strong volume growth and better selling prices across its major businesses.

The company posted strong top line growth despite another disruption in economic activity in January following a surge in COVID-19 cases and the volatility in global commodities markets that continues to drive up prices of raw materials.

All of SMC’s business segments – food and beverage, beer, spirits, power, fuel and oil, and infrastructure--registered revenue growth during the three-month period.

“Overall, we are off to a good start this year, with volumes and revenues showing robust growth,” SMC president and chief executive officer Ramon Ang said.

“While we are still seeing mixed results from our businesses due to the Omicron surge disruption at the start of the year and significant increases in raw material prices, we are well-positioned to build on our gains,” he said.

With economic activity returning to pre-pandemic levels and its workforce has been fully vaccinated, the company is confident it can sustain its target levels of growth, Ang said.