SMC profit jumps 61% in January-March

MANILA, Philippines — Conglomerate San Miguel Corp. (SMC) reported a 61-percent surge in its net income before accounting for foreign exchange adjustments to P14.5 billion in the first quarter.

SMC said net income remained steady at P8.89 billion for the period after the adjustments.

Without the adjustments, the conglomerate’s consolidated net income plunged by 50 percent from P17.74 billion in the same quarter in 2023 due to foreign exchange losses, a turnaround from the gain resulting from the revaluation of foreign currency-denominated long-term debt, as well as cash and cash equivalents.

Revenues for the quarter also accelerated by 13 percent to P392.7 billion on the back of strong performances of key businesses, including its spirits, food, power, fuels and infrastructure units, which reported significant volume growth due to higher demand.

“SMC’s performance for the first quarter sets a solid foundation for the remainder of the year. Our strategic business decisions and market leadership continue to drive sustainable value creation for our shareholders,” SMC president and CEO Ramon Ang said.

“With our diversified business model, we are optimistic that 2024 will sustain our history of growth,” he said.

Fueled by the robust volume growth from Ginebra San Miguel Inc. and the food division, San Miguel Food and Beverage Inc. posted a two percent year-on-year improvement in revenues to P95.43 billion in the first quarter.

SMC’s energy business through San Miguel Global Power registered a seven percent increase in its topline to P44.12 billion for the period, powered by a surge in offtake volume brought about by higher bilateral volumes from emergency power supply agreements with Meralco and new retail supply customers of Limay power plant.

Petron also delivered a strong performance during the quarter with revenues amounting to P227.64 billion, 21 percent higher year-on-year driven primarily by strong volume growth.

Solid performance of its major operating toll roads enabled the infrastructure business to book a nine percent jump in revenues to P8.89 billion.