San Miguel income up 24% to P33B on volume growth

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

“Overall, it’s been a very challenging period, with geopolitical conflict resulting in uncertainties and serious supply and cost issues that are affecting industries all over the world,” SMC President and Chief Executive Officer Ramon S. Ang said in a press release on Thursday.

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

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 went up by 41% to P85.9 billion which it attributed to the performance of its fuel and oil subsidiary Petron and sustained recoveries of its food, beverage, packaging, and infrastructure businesses.

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

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 revenues 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 by 12% to P10.7 billion and consolidated revenues increased by 20% to P65 billion.

The company attributed the growth to a strong rebound in volumes, which had an 11% increase to 108.2 million cases in the first half.

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

San Miguel Foods posted a 16% increase in consolidated revenues 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 utilities and contestable customers.

On the other hand, it posted a decline in its operating income by 26% to P12.8 billion due to an unprecedented increase in fuel input costs and Malampaya gas field supply issues.

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

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

SMC’s infrastructure arm reported a 58% increase in its topline to P13.4 billion as its operating income soared by 160% to P6 billion.

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

At the stock market on Thursday, shares in SMC ended unchanged at P104.50 apiece. — Justine Irish D. Tabile

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