earnings reports

San Miguel rebounds with P29.6-billion profit in H1 2021

Aika Rey
San Miguel rebounds with P29.6-billion profit in H1 2021

San Miguel Corporation

'Our strong performance in the first half reflects the effectiveness of the strategies we've put in place,' says San Miguel Corporation president and COO Ramon Ang

San Miguel Corporation (SMC) sustained its growth momentum as it posted a P29.6-billion net income from January to June 2021 – reversing its P4-billion net loss from the same period in 2020.

SMC’s consolidated revenues grew by 16% to P410.1 billion, with signs of recovery apparent across its businesses.

The conglomerate’s operating income also surged by 309% to P61 billion, as it implemented cost-saving efforts and operational efficiency initiatives, plus improved margins.

“While there is no doubt that the uncertainties brought about by the pandemic will continue to have an impact on our businesses, our strong performance in the first half reflects the effectiveness of the strategies we’ve put in place and our ability to quickly adapt to the evolving needs of our consumers,” said SMC president and chief operating officer Ramon Ang.

Here are SMC units’ headline earnings:

San Miguel Food and Beverage (SMFB)

SMFB showed strong signs of recovery as consolidated revenues grew 20% to P146.8 billion due to improved sales across its food, beer, and alcohol businesses.

SMFB’s consolidated operating income doubled to P23 billion, while net income surged 137% to P17.4 billion.

San Miguel Brewery (SMB)

SMB posted strong sales during the second quarter, driving a 15% increase year-on-year in consolidated volumes to 97.4 million cases during the first half of 2021.

SMB said it implemented cost management initiatives, leading to a 64% larger operating income at P12.1 billion. Net income rose 89% to P9.5 billion.

Ginebra San Miguel

Ginebra San Miguel’s sales reached 20.1 million cases, a 21% increase from the year-ago level. Consolidated revenues grew 36% to P20.2 billion.

Its operating income rose by 45% to P2.6 billion, while net income improved 66%, hitting P2.1 billion.

San Miguel Foods

San Miguel Foods’ consolidated revenues increased 11% to P72.2 billion, while operating income zoomed 272% to P8.4 billion year-on-year.

Its performance was on the back of higher prices and sales, and the growth of its Protein and Animal Health & Nutrition segments.

SMC Global Power Holdings

SMC Global Power Holdings’ profits grew 35% to P12.2 billion, while consolidated revenues inched up 5% year-on-year. This was due to higher spot volumes and improved nominations from customers, SMC said.

Off-take volumes also grew by 5% to 13,552 gigawatt hours.

Operating income, meanwhile, was 5% lower at P17.2 billion due to higher purchase volumes following the gas supply restriction for the Ilijan power plant and outages at the Sual power plant.

Petron Corporation

Petron posted a net income of P3.9 billion, a significant reversal from its P14.2-billion net loss a year ago.

Higher prices also pushed consolidated revenues up by 14% to P174.1 billion.

While consolidated sales volumes were still down by 7% to 38.9 million barrels, Petron’s consolidated operating income rose by 162% to P8.9 billion. Domestic operations contributed P5.6 billion while its Malaysia business added P3.4 billion.

SMC Infrastructure

SMC Infrastructure’s revenues grew 27% to P8.5 billion from January to June. SMC said the average daily traffic flow in all its tollways and volumes for Manila North Harbor and Bulacan Bulk Water improved.

Operating income more than doubled to P2.3 billion. – Rappler.com

Aika Rey

Aika Rey is a business reporter for Rappler. She covered the Senate of the Philippines before fully diving into numbers and companies. Got tips? Find her on Twitter at @reyaika or shoot her an email at aika.rey@rappler.com.