SMC Q1 profits drops to P13.9 B

Diversified conglomerate San Miguel Corporation posted a 19 percent drop in net income to P13.94 billion in the first quarter of 2022 from P17.17 billion in the same period last year due to non-recurring items.

In a statement, the firm said consolidated income from operations jumped 25 percent to P40.1 billion in the first quarter this year from P32.2 billion in the same period of 2021.

Consolidated recurring net income amounted to P13.9 billion, 3 percent better than the P13.57 billion in the same period last year and before the full benefits of the CREATE Law were reflected. Group EBITDA, rose 9 percent to P44.8 billion from P41.02 billion.

SMC said it maintained its growth momentum in the first three months of the year posting consolidated revenues of P316.8 billion, up 57 percent from P201.2 billion in the same period last year, on the back of strong volume growth and better selling prices across its major businesses.

This, despite another disruption in economic activity in January following a surge in COVID-19 cases and the volatility in global commodities markets that continues to drive up prices of raw materials.

“Overall, we are off to a good start this year, with volumes and revenues showing robust growth, ” said SMC President and Chief Executive Officer Ramon S. Ang.

He noted that, “While we are still seeing mixed results from our businesses due to the Omicron surge disruption at the start of the year and significant increases in raw material prices, we are well-positioned to build on our gains.”

“Economic activity is returning to pre-pandemic levels, our workforce has been fully vaccinated, and we have managed to keep the virus under control. With these, we are confident we can sustain our target levels of growth,” Ang added.

San Miguel Food and Beverage, Inc. posted a net income of P9.2 billion while San Miguel Brewery, Inc. generated an operating income of P6.8 billion, at par with previous year’s level and despite the increase in beer taxes implemented at the start of the year.

Consolidated revenues improved 3 percent to P29.7 billion in the first quarter mainly due to growth in its international operations, coupled with the domestic price increase implemented starting October last year, which compensated for lower volumes caused by the lockdowns in January of this year due to Omicron surge.

Ginebra San Miguel Inc. reported a 34 percent growth in net income to P1.4 billion as its revenue grew 11 percent to P12.6 billion, driven by higher volumes, continuing cost management and innovative brand building initiatives.

San Miguel Foods delivered strong first quarter revenues, amounting to P40.8 billion, up 13 percent from the previous year, due to higher volumes and enhanced sales mix that focused on higher value added products.

However, significant increases in the prices of major raw material, along with supply chain challenges and skyrocketing fuel prices, squeezed margins, resulting in an 8 percent decline in operating income to P4.2 billion.

SMC Global Power Holdings Corporation’s (SMCGP) consolidated revenues rose 57 percent to P43.0 billion from P27.4 billion in the previous year due to higher average realization prices for bilateral contracts with fuel pass-on charges, higher spot sales prices, and higher volumes from increased nominations from Meralco and other DUs and industrial customers.

Petron Corporation reported a net income of P3.6 billion for the first quarter, more than double the P1.7 billion registered in the same period last year with the recovery in demand and higher international prices.

SMC Infrastructure registered a 108 percent jump in operating income to P2.5 billion, driven by higher traffic flows in February and March, offsetting the impact of travel restrictions imposed in January.

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