SMC nets P2.2B in Q1

MANILA, Philippines–Conglomerate San Miguel Corp. dropped by 47.6-percent year-on-year in the first quarter of the year to P2.2 billion due to the adverse impact of the US dollar strengthening against the peso.

Without the foreign exchange losses, SMC’s net income was at P4 billion, 23 percent higher than the comparable income for the same period last year.

In a press statement Monday, SMC said the strengthening of the US dollar against the peso resulted in foreign exchange losses of about P1.8 billion for the first quarter, a stark contrast from the P1 billion forex gains booked in the same period last year. But with the appreciation of the peso, the first quarter forex losses were effectively eliminated as of May, SMC said.

SMC delivered P195 billion in revenues for the first quarter, up 9 percent from the same period last year. Petron Corp. and SMC Global Power Holdings Corp. were the biggest contributors. For the power unit, first-quarter operating income rose by 20 percent to P6.6 billion.

Meanwhile, San Miguel Brewery Inc. posted a first quarter operating income of P4.7 billion.Consolidated sales volume reached 46.6 million cases, lower than the previous year owing to a trade build-up prior to the price increase implemented in February 2013 to cover increase in excise taxes. Volumes, however, picked up by February and March this year, improving 11 percent and 7 percent respectively, allowing SMB to match year-ago sales revenues at P17.6 billion.

Ginebra San Miguel posted a first quarter operating income of P43.9 million, a turnaround from P392 million loss a year ago.