SMC posts P12.9 billion net income from January to September

MANILA, Philippines — San Miguel Corp. (SMC), the country’s diversified conglomerate, reported a net income of P12.9 billion in the January to September period, down 62 percent, although its net sales reached P1.1 trillion.

Nine month sales surpassed pre-pandemic full year 2019 revenues of P1 trillion.

Consolidated income from operations, meanwhile, rose by 24 percent to P108.5 billion, mainly driven by the continuing strong performance of Petron, food and beverages, packaging and infrastructure combined with group-wide cost initiatives that mitigated the continuing challenges of increasing raw material costs, elevated coal prices, inflation and forex movements.

SMC president and CEO Ramon Ang said the continuing increase in demand for the company’s products and services has been very encouraging despite the challenging business environment.

“This inspires us to continue with our efforts and to remain focused on achieving full recovery,” Ang said.

San Miguel Food and Beverage Inc. (SMFB) posted consolidated revenues of P261.5 billion, an 18 percent increase over the same period last year, mainly driven by sustained strong volume growth and better selling prices across the beer, spirits and food divisions.

SMFB’s net income rose by nine percent to P26.3 billion compared to a year ago.

San Miguel Brewery Inc. reported a net income of P16.2 billion during the period, up 15 percent on net sales of P98.9 billion, which is 21 percent higher due to the positive impact of relaxed mobility, and rapid reopening of markets in both domestic and international operations.

Ginebra San Miguel Inc. sustained its consistent growth registering revenues of P34.5 billion, up 12 percent compared to last year. This resulted in a net income of P3.4 billion or seven percent higher than the year ago.

San Miguel Foods, on the other hand, posted a net income of P7.4 billion, down two percent due to the impact of the forex movement, as well as interest expenses related to its expansion projects.

SMC Global Power Holdings Corp.’s (SMC Global Power) offtake volumes for the nine month period reached 21,336 Gwh, a four percent growth versus last year mainly driven by increase in demand from distribution utilities.

Consolidated revenues amounted to P166.1 billion, up 77 percent from P93.9 billion supported by the offtake volume growth and the increase in average bilateral rates.

However, with the unprecedented spike in coal prices, SMC Global Power incurred incremental supply costs of about P18 billion, covering the 1,000 MW of capacity contracted to Meralco alone. Coal price increased from P3,340 per metric ton. The company incurred a net loss of P2.7 billion, down by 119 percent from a net income of P13.7 billion a year ago.

Petron Corp. sustained its strong performance, posting combined sales volumes from Petron’s Philippines and Malaysian operations, including its Singapore trading subsidiary, to reach 80.4 million barrels, 37 percent higher than the same period last year. Philippine volumes jumped by 40 percent, with the recovery in industrial demand and the aviation sector.