ICONIC From a food and beverage giant into a diversified conglomerate
Conglomerate San Miguel Corp. (SMC) reported a net income of P48.6 billion in 2019, flat from the level eked out in the previous year, as the slump in the oil and food businesses was offset by higher earnings from power generation and beer brewery.
This net profit level included earnings attributable to minority interest.
Oil refining arm Petron Corp. grappled with volatile international prices that resulted in significantly weaker margins in 2019. A major shutdown of its Bataan refinery due to an earthquake, the implementation of the second tranche of the excise tax increase, and competition from small players or “white stations.
In a press statement on Thursday, SMC reported that consolidated revenues amounted to P1.02 trillion last year, at par with year-ago results.
SMC’s cash flow for the year amounted to P162.4 billion, up by 3 percent from the previous year.
Consolidated operating income ended slightly lower at P115.7 billion, due to a challenging operating environment faced by Petron and San Miguel Foods.
The food business was affected by lower poultry prices during the first half of the year, the impact of African Swine Flu on hogs costs, alongside start-up expenses for its new facilities.