SMC vows to sustain Q1 double-digit growth

Diversified conglomerate San Miguel Corporation is targeting at least double-digit growth in revenue and operating income this year as its businesses continue to expand after the pandemic.

SMC President and CEO Ramon S. Ang 

“As you can see in the first quarter results of the San Miguel group, we are growing double-digits on revenue and operating income. So, we will stick to that target of continuing to grow at least double-digits for year 2024,” said SMC President and CEO Ramon S. Ang during the firm’s annual stockholders’ meeting.

He noted that, last year, SMC “achieved a record profit, supported by a stable economy and initiatives that continue to bear fruit.”

Meanwhile, Ang cited “key developments that promise to shape the future of our company and hold the potential to significantly impact the future of our country.” 

He said these include the firm’s goal to achieve net zero emission by 2050 as well as addressing “key social issues such as poverty, energy and food security, and the infrastructure gap, among others, to lead Filipinos and drive sustainable economic growth.”

“Our mega poultry farm nationwide embody our approach to sustainable food production. They ensure a stable and affordable supply of chicken, ultimately contributing to food security and regional instability.

“Our energy project including the nationwide battery energy storage systems, and the upgraded Ilijan liquefied natural gas facilities support our country's transition to cleaner energy. 

“These initiatives align with our goal to reduce carbon emission and provide reliable and affordable power for all in terms of infrastructure development,”
said Ang.

He also noted that, “our MRT-7 project is now about 80 percent complete and is seen to significantly enhance urban mobility. Our new Manila international airport project in Bulacan is progressing very well.

“And, as part of the new NAIA Corporation, we are also set to take over the management of Ninoy Aquino International Airport by September 18.”

Ang stressed that, “The next few years will be about investing and getting things done. We will build on our success by creating value through nation building project, maximizing synergies and integrating sustainability across our businesses. 

“Every step we take will further strengthen our company and drive positive change across the border of Philippine society.”

SMC reported that its net income surged 61 percent to P14.5 billion (before accounting for foreign exchange adjustments) in the first quarter of 2024 versus the same period last year.

The firm said that, after the forex adjustments, net income remained steady at P8.9 billion despite some global economic challenges.

SMC delivered a 13 percent increase in consolidated revenues to P392.7 billion for the first quarter of 2024 attributed to the performance of key businesses, including its Spirits, Food, Power, Fuels, and Infrastructure units, which reported significant volume growth due to higher demand.

Operational efficiencies and strategic cost management have led to a 15 percent rise in its operating income to P40.5 billion. EBITDA grew by 8 percent to P54.8 billion.

"SMC's performance for the first quarter sets a solid foundation for the remainder of the year. Our strategic business decisions and market leadership continue to drive sustainable value creation for our shareholders. With our diversified business model, we are optimistic that 2024 will sustain our history of growth,” Ang said.