SMC posts strong recovery with ₱17.2-billion profit in Q1

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Metro Manila (CNN Philippines, May 7) — San Miguel Corp. kept its momentum amid the coronavirus pandemic as it recorded a ₱17.2-billion net income for the first quarter of 2021.

In a statement, the conglomerate said this is 15 times better than the ₱1.1 billion it earned in the same period last year, as almost all of its major businesses saw significant recoveries in the first three months led by Petron Corp. and San Miguel Foods.

"We're encouraged by these improvements, as they reflect that our businesses are definitely headed towards full recovery. Despite the challenges ahead, we're determined to sustain our performance and continue taking on meaningful projects and investments that will help our economy recover," SMC President and CEO Ramon Ang said.

Consolidated revenues were down 6% to ₱201.2 billion, as Petron, San Miguel Brewery, and SMC Infrastructure were still challenged by prevailing restrictions.

"This was, however, still an improvement from the decline in the 1st quarter and full year 2020 at 15% and 29%, respectively," SMC noted.

For San Miguel Food and Beverage Inc., profit grew by 66% to ₱9.7 billion due to sustained all-time high volumes from the Spirits division and higher sales from the Food and Beer divisions. Consolidated revenues also grew 11% to ₱76.4 billion, it added.

Net income of San Miguel Brewery Inc. also improved from last year by 45% to ₱5.5 billion. This is despite an 11% decline on consolidated volumes to 51.5 million cases due to community restrictions and liquor bans. It also recorded consolidated revenues of ₱28.8 billion for the first quarter, a 2% improvement from last year.

Ginebra San Miguel Inc., meanwhile, recorded a net income of ₱1 billion for the first quarter, up 120% year-on-year and its highest ever in a single quarter. This was attributed to strong consumption, wider distribution, better selling prices, and lower alcohol cost.

Also contributing to the improved performance is San Miguel Foods, which recorded consolidated revenues of ₱36.2 billion, up 9% from last year. Revenues from the Protein, Animal Nutrition & Health, and the Prepared & Packaged segments increased by 11%, 13% and 6%, respectively.

Further contributing to the increase was the steady growth of its network of community resellers, as well as newly launched products in the seafood and plant-based categories.

For SMC Global Power Holdings Corp., revenues reached ₱27.4 billion, slightly lower than last year as off-take volumes of 6,344 gigawatt hours declined by 5%. This was due to continuing quarantine restrictions and lower spot sales, which were mitigated by higher average realization prices, the company said.

As for Petron Corporation, it reversed its ₱4.9 billion net loss last year to a gain of ₱1.7 billion for the first three months of 2021. This is despite a 20% decline in consolidated revenues to ₱83.3 billion.

"While sales volumes continue to improve, the slowdown in demand due to the COVID-19 pandemic, is still evident in 1Q volumes of 19.4 million barrels, 21% lower than the 24.7 million barrels sold in the same period in 2020," the firm explained.

For SMC Infrastructure, revenues declined 7% to ₱4.3 billion. However, the company is now observing an improvement in the average daily traffic since December despite travel restrictions.

"SLEX and Star tollways, in particular, registered higher average daily traffic volumes compared to the first quarter of last year," it noted.