SMC profits surge 120% to P48 B

San Miguel Corporation reported a 120 percent surge in consolidated net income last year to P48.2 billion, which is at par with pre-pandemic levels.

In a disclosure to the Philippine Stock Exchange, the conglomerate said its group-wide revenues rose 30 percent to P941.2 billion, driven by higher sales across major businesses.

Consolidated operating income jumped 64 percent to P117.2 billion as a result of effective cost management initiatives and enhanced operational efficiencies.

SMC said its Food and Liquor businesses both delivered strong recoveries while its Fuels business registered a profit turnaround.

“Despite the pandemic challenges in 2021, we were able to execute well on our strategies to continue and strengthen our recovery,” SMC President and Chief Operating Officer Ramon S. Ang said.

*San Miguel Corporation (SMC) President Ramon S. Ang*

He noted that, “As we work to overcome the continuing difficulties of the current business environment, we remain committed to investing our resources and capabilities to help further boost economic recovery, improve the lives of more Filipinos, and build back better from this crisis.”

San Miguel Food and Beverage, Inc. (SMFB) registered consolidated revenues of P309.8 billion for 2021, 11 percent higher than the previous year, while net income jumped 40 percent to P31.4 billion.

SMC Global Power Holdings Corp. (SMCGP) delivered offtake volumes of 27,221 Gwh for 2021, a 4 percent improvement over 2020.

However, net income was 15 percent lower at P16.0 billion from 2020’s P18.9 billion, which reflected a one-off gain in the form of a contractor compensation for unfulfilled obligations. Excluding this one-off gain in 2020, 2021 net income grew 5 percent.

Petron Corporation posted a turnaround from its P11.4 billion loss in 2020, reporting a net income of P6.1 billion in 2021.

SMC Infrastructure generated revenues of P19.7 billion, a 35 percent increase from 2020 as traffic volume at its toll roads gradually recovered.

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The article was originally published in Manila Bulletin and written by James A. Loyola.