SMC’s 19% Decrease in Q1 Income Mitigated by Petron, Ginebra, International Operations, and Domestic Price Increases

One of the leading Philippine conglomerates, San Miguel Corp. (SMC) reveals its 19% decrease in income last Q1 of 2022 at P13.94 billion, which fell from 2021’s P17.17 billion income.

Some of its companies that saw a decrease in income are the following: San Miguel Food and Beverage Inc. down by 5% at P9.15 billion, San Miguel Brewery Inc. and its food unit down by 10% at P4.93 billion and P3.03 billion, and SMC Global Power Holdings down by 75% at only P1.92 billion. The company says price hikes in raw materials, fuel prices, and supply chain challenges, have put its margins in a tight spot.

However, with major businesses such as Petron increasing volume growth and better selling prices, the fuel giant was able to double its income to P3.59 billion, helping the company’s consolidated revenues rise up to 57% at P316.8 billion from the previous year’s P201.16 billion. Meanwhile, the company’s recurring income was at P13.94 billion as compared to last year’s P13.56 billion.

Ginebra San Miguel Inc.’s income was also up by 34% at P1.39 billion as compared to last year’s P1.04 billion. Sales also reached P12.62 billion, an 11% increase from the previous year.

The company said its revenue increase was attributed to its growth in international operations and domestic price increase starting October 2021, which was able to mitigate its lower volumes brought by the imposed lockdowns last January due to the Omicron variant’s surge.

San Miguel’s President and CEO Ramon S. Ang states, “Overall, we are off to a good start this year, with volumes and revenues showing robust growth. While we are still seeing mixed results from our businesses due to the Omicron surge disruption at the start of the year and significant increases in raw material prices, we are well-positioned to build on our gains,”

Despite Q1’s decrease in income, consolidated revenues were still able to reach P6.2 billion, a 44% increase from 2021’s P4.33 billion.

Source: ABS CBN News