Top Frontier Investment Holdings Inc., the owner of 67 percent of San Miguel Corporation, reported that its net income soared 802 percent to P28.15 billion in the first half of 2021 from the P4.01 billion net loss suffered in the same period last year.
In a disclosure to the Philippine Stock Exchange, the firm said earnings surged as all major businesses posted robust recoveries amid the continuing Corona Virus Disease – 2019 (COVID-19) restrictions nationwide.
The Group’s consolidated sales increased by 16 percent to P410.12 billion in the first semester of 2021, mainly driven by higher sales from Petron Corporation and SMC’s energy business.
Sales were also boosted by higher volumes, favorable selling prices, and better sales mix of SMC’s food and beverage business.
Consolidated gross profit increased by 84 percent to P97 billion in the first semester of 2021 compared to P52.59 billion for the same period in 2020 mainly attributable to the turnaround of Petron to a gross profit in 2021 from a gross loss in 2020.
Dubai crude prices significantly improved from an average of US$50 per barrel in December 2020 to an average of US$72 per barrel in June 2021, resulting to net inventory gains in 2021 compared to substantial inventory losses in 2020.
The resumption of Petron’s Bataan refinery operations at the back of favorable prices also contributed to the improved performance of Petron.
The increase in the Group’s gross profit was also attributable to the higher sales of the Food and Beverage business.
The firm said it also benefitted from the adoption of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law in 2021 and 2020, which reduced income tax rate from 30 percent to 25 percent.