SMC delivers strong first half results amid challenging conditions
San Miguel Corp. reported strong financial performance for the first half driven by top-line gains across its businesses. This, amid the lingering effects of the pandemic, supply chain bottlenecks and inflationary pressures.
Consolidated sales revenue rose 73 percent to P711.4 billion on sustained volume growth and better selling prices. SMC’s operating income grew by 41 percent to P85.9 billion mainly due to the improved performance of its fuel and oil subsidiary Petron and sustained recoveries of its food, beverage, packaging, and infrastructure businesses.
EBITDA (earnings before interest, taxes, depreciation and amortization) reached P91.2 billion, up 13 percent from the first half of 2021.
Recurring consolidated net income was up 24 percent to P32.5 billion. With the effects of forex movements and the impact of the CREATE Law, which were reflected in its 2021 results, consolidated net income settled at P19.8 billion.
“Overall, it’s been a very challenging period, with geopolitical conflict resulting in uncertainties and serious supply and costs issues that are affecting industries all over the world. Despite this, and even with the lingering effects of the pandemic, we’re encouraged by the strong and increasing demand for our products and services, as evidenced by our higher volumes and revenues in the first half. This shows that our country’s economic recovery and growth are gaining pace. We will maximize every opportunity to further strengthen our performance in the second half,” said SMC President and Chief Executive Officer Ramon S. Ang.
San Miguel Food and Beverage, Inc. (SMFB) posted consolidated revenues of P172 billion in the first half, a 17 percent increase over the same period last year, driven by volume growth and better selling prices across the Beer, Spirits, and Food divisions.
SMFB’s consolidated operating income was up 15% to P26.6 billion, while net income grew 8 percent to P18.8 billion.
San Miguel Brewery, Inc. (SMB) achieved a strong rebound in volumes in the second quarter, resulting in an 11 percent volume increase to 108.2 million cases in the first half. Correspondingly, consolidated revenues grew 20 percent to P65 billion.
Operating income rose 22 percent to P14.7 billion while net income grew 12 percent to P10.7 billion. DMS