SMC profit up 218% as businesses pick up
Conglomerate San Miguel Corp. (SMC) booked P34.2 billion in net profit at end-September, which surged by 218-percent year-on-year as various businesses recovered from the disruptions brought about by the COVID-19 pandemic.
This net profit level includes earnings attributable to minority interest.
January to September consolidated revenues rose by 22-percent year-on-year to P650.6 billion, driven by volume growth across SMC’s major businesses.
Operating income jumped by 112-percent year-on-year to P87.7 billion as SMC kept a tight lid on expenses and enhanced supply chain efficiencies. Cash flow improved by 41-percent year-on-year to P118.1 billion.
“The operating environment remains very challenging, but we’ve managed to stay resilient, focus on our goals and quickly adapt to changing conditions. We’re determined to keep this momentum going, especially with the easing of quarantine restrictions,” SMC president Ramon S. Ang said in a press statement on Thursday.
SMC’s major businesses, particularly the oil business under Petron Corp. and the power business, delivered quarter-on-quarter volume and revenue growth.
Traditional businesses under San Miguel Brewery Inc., Ginebra San Miguel Inc., and San Miguel Foods likewise continued to grow volumes, albeit at a slower pace, due to mobility restrictions and liquor bans implemented in July and August.
San Miguel Food and Beverage Inc.’s (SMFB), the unit which consolidated food and beverage businesses, reported a 68-percent year-on-year growth in net profit to P24.2 billion.
Consolidated revenues
SMFB’s consolidated revenues increased by 14 percent to P221.7 billion for the nine-month period. Consolidated operating income rose by 60 percent to P32.8 billion.
SMC Global Power Holdings Corp. saw a 5-percent year-on-year decline in net income to P13.7 billion at end-September. Its performance was partly affected by ongoing gas restrictions at the Malampaya field and the extended outage of the Sual plant.
Petron reported a consolidated net income of P5 billion also for the period ending September, a turnaround from the P12.6-billion net loss in 2020.
Meanwhile, SMC Infrastructure generated revenues of P13.3 billion in the same period, up 29 percent from the previous year, as average daily traffic volumes grew by 35 percent.
