SMC profit hits P17.2B as businesses bounce back

Conglomerate San Miguel Corp. (SMC) chalked up P17.2 billion in first quarter net profit, 15 times better than the bottom line seen in the same period last year, as almost all major businesses marked a strong recovery despite the prolonged pandemic.

This three-month net profit included earnings attributable to noncontrolling equity interest at the parent conglomerate.

“We’re encouraged by these improvements, as they reflect that our businesses are definitely headed towards full recovery. Despite the challenges ahead, we’re determined to sustain our performance and continue taking on meaningful projects and investments that will help our economy recover,” SMC president and chief operating officer Ramon Ang said in a press statement on Thursday.

The earnings growth was achieved even as consolidated revenues for the first quarter amounted to P201.2 billion, down by 6 percent year-on-year as volumes of Petron Corp., San Miguel Brewery and SMC Infrastructure had been curbed by prevailing lockdown restrictions.

With lower raw material costs and cost-saving efforts, consolidated operating income reached P32.2 billion, up by 175 percent year-on-year.

SMC Global Power Holdings Corp. contributed a three-month net income of P7.8 billion out of revenues of P27.4 billion.

Leading oil firm Petron Corp. returned to profitability with a net income of P1.7 billion, compared to a P4.9-billion net loss in the first quarter of last year.

SMC Infrastructure’s revenues for the first quarter stood at P4.3 billion, down by 7 percent year-on-year.

San Miguel Food and Beverage’s consolidated operating income and net income reached P12.6 billion and P9.7 billion, rising by 45 percent and 66 percent, respectively. Flagship San Miguel Brewery Inc.’s net income increased by 45 percent year-on-year to P5.5 billion.

Ginebra San Miguel Inc. achieved a net income of P1 billion for the first quarter, up 120 percent year-on-year, its highest growth ever in a single quarter.

San Miguel Foods contributed P36.2 billion in revenues, up by 9 percent year-on-year.