SMC net income rises to P34.2B

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San Miguel Corporation head office in Ortigas, Mandaluyong City, October 26, 2014

SAN MIGUEL Corp. (SMC) on Thursday said its consolidated net income for the first nine months of the year surged 218% to P34.2 billion from P10.7 billion in the same period last year, despite its three companies’ volumes growing at a “slower pace.”

“Consolidated revenues rose by 22% to P650.6 billion,” SMC said in an e-mailed statement. The company attributed the increase to volume growth across its major businesses.

SMC has yet to disclose its quarterly report.

The company said its operating income climbed by 112% to P87.7 billion in the first nine months.

SMC President Ramon S. Ang said the operating environment remains very challenging. “[B]ut we’ve managed to stay resilient, focus on our goals, and quickly adapt to changing conditions.”

“We’re determined to keep this momentum going, especially with the easing of quarantine restrictions,” he added.

Metro Manila mayors lifted the general curfew in the capital region last week along with the easing of the lockdown to Alert Level 2. Malls in the Philippine capital and nearby cities will adjust operating hours starting mid-November.

National Capital Region was placed under Alert Level 2 from Nov. 5 to 21 amid decreasing infections. Under the lockdown level, businesses may operate indoors at 50% capacity. They will get an additional 10% capacity if they have a so-called safety seal from the government. For outdoor operations, they may operate at 70% capacity.

“Petron and Power… delivered quarter-on-quarter volume and revenue growth. San Miguel Brewery, Inc. (SMB), Ginebra San Miguel, Inc. (GSMI), and San Miguel Foods likewise continued to grow volumes, albeit at a slower pace, due to mobility restrictions and liquor bans implemented in July and August,” SMC said.

San Miguel Food and Beverage, Inc. saw its revenues increase by 14% to P221.7 billion. Its operating income rose by 60% to P32.8 billion, while net income went up 68% to P24.2 billion.

Meanwhile, SMC Global Power Holdings Corp.’s revenues went up by 7% to 93.9 billion, while operating income decreased by 14% to P24.9 billion “due to higher spot purchases and rising coal prices,” SMC said.

“Net income amounted to P13.7 billion, down by 5%,” it said, noting that the company’s performance was “partly affected by ongoing gas restrictions at the Malampaya field, and the extended outage of the Sual plant.”

Petron Corp. reported a net income of P5 billion for the first nine months, a turnaround from a P12.6 billion net loss previously.

“Sales volumes in its Philippine operation posted recoveries from lubricants and retail stations, which increased by 28% and 9%, respectively, along with a significant growth in its petrochemicals business,” SMC said.

Meanwhile, SMC Infrastructure’s revenues for the first nine months totaled P13.3 billion, a 29% increase from last year.

“Average daily traffic volumes grew by 35% at all operating toll roads,” SMC said. “Operating income rose by 102% to P4.3 billion from the same period in 2020.”

SMC shares closed unchanged at P117.20 apiece on Thursday. — Arjay L. Balinbin

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