SMC core profits rise to P43.5 B

Diversified conglomerate San Miguel Corporation (SMC) reported a 26 percent growth in consolidated core net income to P43.5 billion in the first nine months of 2022 from the P34.4 billion earned in the same period last year.

However, consolidated nine-month net income fell 62 percent to P12.9 billion this year from P34.15 billion in 2021 with the impact of unrealized forex loss.

SMC sustained its strong sales momentum, recording consolidated revenues of P1.1 trillion in the first nine months of 2022, up 71 percent from P650.6 billion in the previous year, surpassing pre-pandemic full year 2019 revenues of P1.0 trillion.

Consolidated income from operations rose 24 percent to P108.5 billion, mainly driven by the continuing strong performance of Petron, Food and Beverages, Packaging and Infrastructure combined with groupwide cost initiatives.

These mitigated the continuing challenges of increasing raw material costs, elevated coal prices, inflation and forex movements.

“The continuing increase in demand for our products and services has been very encouraging despite the challenging businesses environment,” said SMC President and CEO Ramon S. Ang.

He added that, “This inspires us to continue with our efforts and to remain focused on achieving full recovery.” San Miguel Food and Beverage, Inc. reported that its net income rose 9 percent to P26.3 billion in the first nine months of 2022 compared to the same period in 2021.

San Miguel Brewery Inc. posted a net income growth of 15 percent to P16.2 billion while Ginebra San Miguel, Inc. registered a net income of 3.4 billion, 7 percent higher from same period in 2021.

San Miguel Foods’ net income stood at P7.4 billion, down 2 percent compared to last year’s level, largely affected by the impact of the forex movement, as well as interest expenses related to its expansion projects.

SMC Global Power Holdings Corp. said consolidated power operating income declined by 28 percent to P20.5 billion due to higher costs as Petron Corporation’s consolidated net income amounted to P8.2 billion, up 64 percent from last year’s P4.99 billion.

Traffic volume of operating toll roads sustained its upward trend, increasing by 31 percent and delivering revenues of P20.9 billion, a 57 percent growth from the previous year. Operating income climbed to P10.1 billion amid higher traffic volume.