Diversified conglomerate San Miguel Corporation (SMC) is optimistic it will sustain this year’s strong financial performance as its major investments continue to benefit from the country’s economic growth.

In a statement, SMC reported a strong performance in 2023 with consolidated net income surging 67 percent to P44.7 billion on the back of significant volume growth across its key businesses.

The firm said major contributors to the jump in earnings are San Miguel Brewery, Inc., Ginebra San Miguel, Inc., Petron, and SMC Infrastructure, together with the integration of Eagle Cement Corporation's financial results.

SMC's strategic focus on operational efficiencies and sustainability initiatives contributed to a 24 percent increase in EBITDA to P205.3 billion and a 34 percent rise in consolidated operating income to P144.5 billion.

“We had a strong finish to 2023, which was marked by a healthy operating income and EBITDA, thanks to our continuous efforts to maximize operational efficiencies, aligned with our sustainability agenda,” SMC President and CEO Ramon S. Ang said. 

He added that, “Our robust performance again reflects our resilience and ability to deliver a strong bottom line despite macroeconomic uncertainties, and our commitment to continue investing on nation-building projects.”

SMC said it remains confident in its ability to efficiently manage its business and continue to deliver sustainable value, amid continuing market uncertainties. 

The Company is optimistic that the country’s robust macroeconomic fundamentals and its strategy, anchored on our sustainability agenda, will sustain growth momentum throughout 2024.

SMC’s Food and Beverage business is seen to continue its growth trajectory, aided by a positive consumer demand backdrop, favorable inflationary environment, and strong brand following.

The Infrastructure business, on the other hand, is seen to sustain its growth trajectory with continued traffic growth across its network, along with increased travel throughout the country.

Meanwhile, with its increased capacity, the Cement business is expected to benefit from both private and public sectors’ push for economic and infrastructure development.

San Miguel Food and Beverage Inc. (SMFB) delivered outstanding financial results for 2023 with revenues improving 6 percent to P379.8 billion as all its business units reported sales growth on account of improved volumes and pricing strategies.

Its net income jumped 10 percent to P38.1 billion, the highest achieved by the group since SMFB’s consolidation in 2018. 

San Miguel Global Power reported a 23 percent decline in revenues to P169.6 billion, as a result of lower contracted volumes, and prices due to reduced fuel tariffs but net income tripled to P9.9 billion from 2022’s P3.1 billion.

Petron’s continuing efforts to sustain demand recovery, optimize assets and resources, and respond to market volatility, resulted in a 51 percent hike in net income to P10.1 billion fro the P6.7 billion reported in the previous year.

SMC Infrastructure registered consolidated revenues of P34.0 billion, 17 percent higher than the previous year due to the sustained growth across all operating toll roads. Net income increased 33 percent increase over 2022 to P11.4 billion. 

The Cement Business, comprised of Eagle Cement Corporation, Northern Cement Corporation, and Southern Concrete Industries, Inc., registered a four-fold growth in consolidated revenues to P37.2 billion in 2023, mainly due to the full-year consolidation of Eagle in 2023, and the start of commercial operations of our new facility in Davao del Sur.

The group swung to an operating income of nearly P6.0 billion from a loss last year.