San Miguel sales, earnings return to prepandemic levels
Conglomerate San Miguel Corp. (SMC) returned to prepandemic profitability in 2021 as its net income surged by 120 percent to P48.2 billion, with most businesses regaining ground after the hard lockdowns seen in the previous year.
This earnings level included earnings attributable to minority interest. Comparative profit level in 2019, the last year before the COVID-19 pandemic erupted, amounted to P48.57 billion, of which P21.33 billion was profit attributable to equity holders of parent firm.
Group-wide revenues, driven by higher sales across major businesses, rose by 30 percent to P941.2 billion last year, still a bit short of the P1-trillion revenue base last seen in 2019.
Consolidated operating income jumped by 64 percent to P117.2 billion, which SMC credited to effective cost management initiatives and enhanced operational efficiencies.
“Despite the pandemic challenges in 2021, we were able to execute well on our strategies to continue and strengthen our recovery. As we work to overcome the continuing difficulties of the current business environment, we remain committed to investing our resources and capabilities to help further boost economic recovery, improve the lives of more Filipinos, and build back better from this crisis,” SMC president and chief operating officer Ramon Ang said in a press statement on Thursday.
“We are confident we can accelerate growth while equally responding to the needs of the environment and the communities we serve,” he added.
SMC’s food and liquor businesses both recovered strongly while its fuels business resumed profitability.
It was earlier reported that San Miguel Food and Beverage Inc. grew consolidated revenues last year by 11 percent to P309.8 billion for 2021. The food, beer and spirits divisions all delivered better results.
SMC Global Power Holdings Corp. delivered a net income of P16 billion—already marking an 11-percent improvement over 2019 although 15 percent down from the previous year. The P18.9-billion profit in the previous year reflected a one-off gain in the form of a contractor compensation for unfulfilled obligations.
Excluding this one-off item, the power business’ 2021 net income grew by 5 percent, as offtake volumes improved by 4 percent. Better average spot prices and average bilateral rates, together with increased nominations from customers, also boosted revenues by 16 percent to P133.7 billion. However, operating income declined by 14 percent to P31.9 billion due to higher power purchases and fuel costs.
Oil refining and distribution arm Petron Corp. reverted to profitability, booking a P6.1-billion net income compared with an P11.4-billion net loss in 2020.
