SMC delivers strong H1 results

San Miguel Corp. reported strong financial performance in the first half of 2022 driven by top-line gains across its businesses. This, amid the lingering effects of the pandemic, supply chain bottlenecks and inflationary pressures.

Consolidated sales revenue rose 73 percent to P711.4 billion on sustained volume growth and better selling prices. Operating income grew by 41 percent to P85.9 billion, boosted by  the improved performance of its fuel and oil subsidiary Petron, and sustained recoveries of its food, beverage, packaging, and infrastructure businesses. Ebitda (earnings before interest, taxes, depreciation and amortization) reached P91.2 billion, up 13 percent from the first half of 2021.

Recurring consolidated net income was up 24 percent to P32.5 billion. With the effects of foreign exchange movements and the impact of the CREATE ( Corporate Recovery and Tax Incentives for Enterprises)  Law, which were reflected in its 2021 results, consolidated net income settled at P19.8 billion.

“It’s been a very challenging period, with geopolitical conflict resulting in uncertainties and serious supply and costs issues that are affecting industries all over the world. Despite this, and even with the lingering effects of the pandemic, we’re encouraged by the strong and increasing demand for our products and services,” SMC president and chief executive officer Ramon S. Ang said.

This, he said, showed that the country’s economic recovery and growth were gaining pace.

Volume rebound

San Miguel Food and Beverage, Inc. (SMFB) posted consolidated revenue of P172 billion in the first half, a 17-percent increase over the same period last year.

SMFB’s consolidated operating income was up 15 percent to P26.6 billion, while net income grew 8 percent to P18.8 billion.

San Miguel Brewery Inc. (SMB) posted a strong rebound in volumes in the second quarter, resulting in an 11 percent volume increase to 108.2 million cases in the first half.  Consolidated revenue grew 20 percent to P65.0 billion.

Operating income rose 22 percent to P14.7 billion while net income grew 12% to P10.7 billion.

Ginebra San Miguel Inc. (GSMI) continued to deliver consistent growth with domestic volumes growing by 9 percent to of 22.0 million cases. Revenue improved 14 percent to P23.1 billion. Operating income rose 25 percent to P3.3 billion, while net income ended at P2.5 billion, 19 percent better than in the same period last year.

San Miguel Foods sustained its top-line performance throughout the first half, posting a 16% increase in consolidated revenues, which reached P84.0 billion on the back of higher volumes and better selling prices.

Energy, oil, infra

First half off-take volumes for SMC Global Power Holdings Corp. reached 14,336 Gwh, up 6 percent from the same period last year. Consolidated revenue reached P102.6 billion, an increase of 70 percent.

Operating income, however, declined by 26 percent to P12.8 billion due to unprecedented increase in fuel input costs and the deration of the Ilijan gas plant due to Malampaya gas field supply issues.

Petron Corp. revenue surged by 129 percent to P398.5 billion in the first half from P174.1 billion a year ago.

Consolidated volumes from its Philippine and Malaysia operations grew 34 percent to 51.4 million barrels on the back of demand recovery due to sustained easing of travel restrictions and the improved pandemic situation.

With improvements in refining margins, consolidated operating income increased 79 percent to P16 billion, with net income doubling to P7.7 billion from P3.87 last year, surpassing the full-year 2021 level.

Revenue of the conglomerate’s infrastructure unit grew by 58 percent to P13.4 billion in the same period. Operating income soared by 160 percent to P6 billion amid higher traffic volume.