San Miguel’s income rose 24% to P33B on volume growth

SAN MIGUEL Corp. (SMC) reported a 24% increase in its first-half recurring consolidated net income to P32.5 billion driven by gains across its businesses.

“Overall, it has been a very challenging period, with geopolitical conflicts resulting in uncertainty and severe supply and cost issues affecting industries worldwide,” SMC President and CEO Ramon S. Ang said in a press release Thursday.

“Despite this, and even with the lingering effects of the pandemic, we are encouraged by the strong and growing demand for our products and services, as evidenced by our higher volumes and revenues in the first half of the year,” added Mr. Ang.

The company’s consolidated sales revenue reached P711.4 billion, 73% better than the previous year due to sustained volume growth and better selling prices.

SMC’s operating income rose 41% to P85.9 billion, which it attributed to the performance of its fuel and oil subsidiary Petron and sustained recoveries in its food, beverage, packaging and infrastructure businesses.

“This shows that our country’s economic recovery and growth is gaining momentum. We will maximize every opportunity to further strengthen our performance in the second half,” said Mr. Ang.

Its food and beverage business, San Miguel Food and Beverage, Inc. reported an 8% increase in its first-half net income to P18.8 billion.

The growth came after a 17% increase in its consolidated revenue to P172 billion and a 15% increase in its consolidated operating income to P26.6 billion driven by volume growth and better selling prices across its beer, spirits and food divisions.

Meanwhile, San Miguel Brewery, Inc.’s net income grew 12% to P10.7 billion. and consolidated revenues increased by 20% to P65 billion.

The company attributed the growth to a strong recovery in volume, which was up 11% to 108.2 million cases in the first half.

Ginebra San Miguel, Inc. reported a 19% increase in its net income to P2.5 billion and a 14% increase in its revenue to P23.1 billion.

San Miguel Foods posted a 16% increase in consolidated revenue to P84 billion and a 3% increase in consolidated operating income to P8.6 billion.

SMC Global Power Holdings Corp. made a big jump in its revenue by 70% to P102.6 billion, which the company attributed to improvements in Manila Electric Co.’s nominations and higher demand from distribution companies and competing customers.

On the other hand, it posted a 26% drop in its operating income to P12.8 billion due to an unprecedented increase in fuel costs and problems with the supply of the Malampaya gas field.

Petron Corp. reported first-half net income of P7.7 billion, double last year’s P3.87 billion, as its consolidated revenue rose to P398.5 billion, more than double the P174.1 billion reported last year.

“Consolidated volumes from its Philippine and Malaysian operations grew 34% to 51.4 million barrels on the back of demand recovery due to continued easing of travel restrictions and the improving pandemic situation,” the company said.

SMC’s infrastructure division reported a 58% increase in its top line to P13.4 billion as its operating income rose 160% to P6 billion.

“We will maximize every opportunity to further strengthen our performance in the second half,” said Mr. Ang.

On the stock market Thursday, shares of SMC ended unchanged at P104.50 apiece. — Justine Irish D. Tabile

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