SMC consolidated net income drops 33% in first half

Published August 4, 2022, 4:57 PM

by James A. Loyola

Diversified conglomerate San Miguel Corporation reported a 33 percent drop in consolidated net income to P19.8 billion in the first semester of 2022 from the P29.6 billion registered in the same period last year.

In a statement, SMC noted the lingering effects of the pandemic, supply chain bottlenecks and inflationary pressures which offset the impact of top-line gains across its businesses.


Consolidated sales revenue rose 73 percent to P711.4 billion in the first half of the year, from P410.1 billion in the same period of 2021, on sustained volume growth and better selling prices.

SMC’s operating income grew by 41 percent to P85.9 billion mainly due to the improved performance of its fuel and oil subsidiary Petron and sustained recoveries of its food, beverage, packaging, and infrastructure businesses.

Recurring consolidated net income was up 24 percent to P32.5 billion from P26.1 billion. This excludes the effects of forex movements and the impact of the CREATE Law in its 2021 results.

SMC President Ramon S. Ang

“Overall, 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,” said SMC President and Chief Executive Officer Ramon S. Ang.

He added that, “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, as evidenced by our higher volumes and revenues in the first half.”

“This shows that our country’s economic recovery and growth are gaining pace. We will maximize every opportunity to further strengthen our performance in the second half,” Ang noted.

San Miguel Food and Beverage, Inc. (SMFB) posted consolidated revenues of P172 billion in the first half, a 17 percent increase over the same period last year, driven by volume growth and better selling prices across the Beer, Spirits, and Food divisions.

San Miguel Brewery, Inc. (SMB) achieved 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. Correspondingly, net income grew 12 percent 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. Revenues improved 14 percent to P23.1 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 percent increase in consolidated revenues to P84.0 billion on the back of higher volumes and better selling prices.

First half off-take volumes for SMC Global Power Holdings Corp. reached 14,336 Gwh, up 6 percent from the same period last year.

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 Corporation delivered a strong performance in the first-half with net income doubling to P7.7 billion from P3.87 last year– already surpassing the full-year 2021 level.

Meanwhile, revenues of the company’s infrastructure arm grew 58 percent to P13.4 for the period in review. Its operating income soared by 160 percent to P6.0 billion amid higher traffic volume.