SMC more than triples net income to P34.2 B

Published November 11, 2021, 4:47 PM

by James A. Loyola

Diversified conglomerate San Miguel Corporation (SMC) more than tripled its consolidated net income to P34.2 billion in the first nine months of 2021 compared to the P10.7 billion earned in the same period last year.


In a statement, the firm said higher profits came as SMC continued its steady recovery from the economic impacts of the pandemic.

Consolidated revenues rose 22 percent to P650.6 billion driven by volume growth across SMC’s major businesses.

Operating income grew 112 percent to P87.7 billion as it continues to closely manage costs and enhance supply chain efficiencies. EBITDA was up 41 percent 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,” said SMC president Ramon S. Ang.

San Miguel Corporation (SMC) President Ramon S. Ang

Meanwhile, Ang said work continues for the company to help the economy recover better through its investments in strategic projects that generate jobs and empower lives.

“We are committed to finding innovative ways to shape a more sustainable future not only for SMC but for our country. At the same time, we recognize the need to continue supporting the most marginalized communities and sectors that have yet to recover and rebuild from the impacts of the pandemic,” he added.

SMC’s major businesses, particularly Petron and Power, delivered quarter on quarter volume and revenue growth.

San Miguel Brewery, Inc. (SMB), Ginebra San Miguel Inc. (GSMI), 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 consolidated revenues increased 14 percent to P221.7 billion, as its Food, Beer, and Spirits divisions all registered growth. Consolidated net income was up 68 percent to P24.2 billion.

SMC Global Power Holdings Corp. (SMCGP) recorded off-take volumes of 20,533 Gwh, 3 percent up versus the same period last year, driven by longer operating hours for the Masinloc, Limay, and San Roque Power Plants.

Consolidated revenues increased by 7 percent to 93.9 billion, while net income dipped 5 percent to P13.7 billion due to higher spot purchases and rising coal prices.

The company’s performance was partly affected by ongoing gas restrictions at the Malampaya field, and the extended outage of the Sual plant.

Petron Corporation reported a consolidated net income of P5.0 billion for the first nine months, a turnaround from the P12.6 billion net loss it reported in 2020. Consolidated revenues rose 35% to P291.6 billion.

SMC Infrastructure generated revenues of P13.3 billion for the first nine months of the year, up 29 percent from the previous year, as average daily traffic volumes grew by 35 percent at all operating toll roads, particularly SLEX, STAR and the Skyway system.

Operating income rose 102 percent to P4.3 billion from the same period in 2020.