Hit by peso's slump, San Miguel reports lower 9-month earnings

MANILA, Philippines — Conglomerate San Miguel Corp. reported its net income suffered in the first three quarters as a result of the peso’s depreciation despite the boons of a reopened Philippine economy.

In a disclosure sent to the Philippine Stock Exchange on Tuesday, the Ramon Ang-led conglomerate indicated its consolidated net income retreated 62.1% year-on-year to P12.9 billion in the first nine months. San Miguel attributed the decline to “the impact of unrealized forex loss.”

Despite the drag on the company’s bottom-line, San Miguel reported its consolidated revenues in the first nine months surged. The company reckoned revenues leapfrogged 71% on-year to P1.1 trillion. 

The company’s consolidated income from its various business segments rose 24% on annual basis to P108.5 billion. The growth was driven by its oil refinery, food and beverage, packaging, and infrastructure segments.

“The continuing increase in demand for our products and services has been very encouraging despite the challenging businesses environment,” Ang, the company's president and chief executive, said.

Broken down, the company’s food and beverage arm saw consolidated revenues rose 18% on-year to P261.5 billion. San Miguel Food and Beverage Inc. credited the growth to higher sales volumes, such as those observed in sales of its alcoholic drink products in the first three quarters. 

Its brewery division saw its net income advance 15% on-year to P16.2 billion in the first nine months. San Miguel Brewery Inc. credited the improvement since it sold 164.2 million cases of its signature brew, up 11% when compared to the same period a year ago. 

Revenues of Ginebra San Miguel, Inc. advanced 12% on-year to P34.5 billion in the first three quarters. This segment sold 32.6 million cases of its various distilled spirits, up 8% on an annual basis in the same period. 

Likewise, San Miguel's power segment reported revenues that expanded 77% on-year to P166.1 billion in the first nine months. The growth in SMC Global Power was supported by “the offtake volume growth and the increase in average bilateral rates.”

Petron Corp., meanwhile, benefitted from a reopened economy, as its operation in its domestic and Malaysian hubs posted higher sales volumes in the first three quarters. Revenues ballooned 116% on an annual basis to P631.1 billion. 

San Miguel's infrastructure segment reported similar gains as well. The company said its toll roads benefitted from higher traffic volumes, raking in P20.9 billion revenues that grew 57% in the first nine months.

Shares in San Miguel finished trading on Tuesday up 0.82% to P97.8 apiece.