SMC net income down 47.6% in first quarter

The net profit of San Miguel Corp. (SMC) dropped by 47.6-percent year-on-year in the first quarter to P2.2 billion due to foreign exchange losses arising from the strengthening of the dollar against the peso.

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

In a statement, SMC said the strengthening of the dollar against the peso resulted in foreign exchange losses of about P1.8 billion for the first quarter, reversing the P1 billion in foreign exchange 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 had P195 billion in revenues for the first quarter, up 9 percent from the same period last year. Doris C. Dumlao