SMC income more than doubles as businesses rebound

SAN MIGUEL Corp. (SMC) on Thursday said its consolidated net income for 2021 soared 120% to P48.2 billion and bounced back to pre-pandemic levels.

“[Our] group-wide revenues, driven by higher sales across major businesses, rose 30% to P941.2 billion,” the listed conglomerate said in a media release.

The company also reported its consolidated operating income increased by 64% to P117.2 billion on the back of effective cost management initiatives and enhanced operational efficiencies.

SMC President and Chief Operating Officer Ramon S. Ang said effective strategies adopted by the company helped overcome the pandemic challenges.

“We are confident we can accelerate growth while equally responding to the needs of the environment and the communities we serve,” he said.

Last week, the company reported that it is working on reducing its group-wide water consumption by half by 2025. Since 2017, it reported saving 27.4 billion liters of water under its “Water For All” water stewardship initiative.

San Miguel Food and Beverage, Inc. logged P309.8 billion in consolidated revenues last year, 11% more than its registered revenues in 2021, as the food, beer and spirits divisions “all turned in solid results, supported by consistent volume recovery throughout the year.”

Meanwhile, SMC Global Power Holdings Corp. (SMCGP) saw its net income decline by 15% to P16 billion last from P18.9 billion previously after the company paid a contractor compensation for unfulfilled obligations.

If not for the said obligation, SMCGP’s net income would have climbed 5%.

Its revenues, meanwhile, went up by 16% to 133.7 billion, which was largely because of cheaper average spot prices and average bilateral rates, as well as increased nominations from customers.

Its operating income, on the other hand, decreased by 14% to P31.9 billion “due to higher power purchases and fuel costs.”

Petron Corp. swung to profitability in 2021 with a reported net income of P6.14 billion from an P11.4-billion loss in 2020 due to higher sales volume driven by more relaxed quarantine restrictions.

“Petron’s consolidated sales volumes grew 5% to 82.2 million barrels, as a result of the easing of restrictions and the gradual restarting of economic activities which improved demand throughout the year,” SMC said.

Meanwhile, revenues of SMC’s infrastructure business reached P19.7 billion, 35% higher than in the previous year, as more cars are now allowed on the road, helping toll roads gradually recover.

“Operating income rose 164% to P6.8 billion as costs and expenses were contained,” SMC said.

The company did not release its financial report for the fourth quarter alone.

At the stock exchange, SMC shares slid 20 centavos or 0.20% to close at P101.80 apiece on Thursday. — Marielle C. Lucenio