SMC is now RSA’s brand

In a span of about 25 years, Ramon S. Ang, or RSA, has truly reshaped San Miguel Corp. as his brand.

The Soriano family will still be remembered as an integral part of the history of SMC, when Andres Soriano joined the company in 1918, then known as La Fabrica de Cerveza de San Miguel, which was actually founded in 1890 by Enrique Ma. Barreto de Ycaza.

In the same way, Eduardo “Danding” Cojuangco Jr. will remain a key figure in SMC’s long history after gaining control of the company in 1983, and he was instrumental in formally bringing in RSA into the firm in 1999 as vice chairman, although RSA had long been a trusted associate of Danding.

RSA eventually gained control of the then food conglomerate in 2012 after acquiring the shares of Danding.

However, it was under RSA’s bold leadership that SMC evolved from a food and beverage company to a more expansive group that now includes vital infrastructure projects such as major tollways, airports, railways, real estate and energy through Petron Corp. and SMC Global Power.

RSA’s two major airport projects – the Ninoy Aquino International Airport and the still-under-construction Bulacan International Airport – and his tollway projects – the NAIAX, SLEX and TPLEX – will probably be his major legacy to the country long after he is gone. SMC also operates the Caticlan Airport in Panay Island.

RSA’s leadership of SMC has elevated him to the rarefied rank of taipan and among the trusted circle of business leaders that President Marcos turns to for advice on matters of the economic sector.

Thus, there is no denying that RSA has truly made SMC his brand – one that is remarkably showing strong growth and profits.

SMC this week reported that it posted first-quarter earnings of P43.4 billion, rising sharply from P8.9 billion a year earlier, supported by one-time gains from the partial sale of power assets and foreign exchange gains.

Core net income, excluding non-recurring items, grew by 31 percent to P19 billion, driven by disciplined cost management and solid performance in most of its core businesses.

Revenues declined by eight percent to P360.9 billion, mainly due to weaker crude prices affecting the fuel and oil segment, and lower contributions from the power business following the deconsolidation of the Ilijan Power Plant. Stronger sales results from the food, hard liquor and infrastructure units helped offset the decline.

Operating income rose by 13 percent to P45.6 billion, supported by margin expansion across the power, food and beverage and infrastructure segments. Consolidated EBITDA increased by 17 percent year-on-year to P64.2 billion.

In a statement, Ang was quoted as saying, “We had a good start to the year. Despite some challenges, our businesses remained resilient and continued to perform well. We will keep moving forward, grow responsibly and make sure more Filipinos benefit from the progress we are making.”

San Miguel Food and Beverage Inc. (SMFB) reported consolidated revenues of P98.9 billion, up by four percent year-on-year. Gross profit grew by 11 percent to P28.6 billion, while operating income rose 16 percent to P15.2 billion. Net income increased by 16 percent to P11.6 billion, with EBITDA reaching P19.6 billion.

San Miguel Foods posted P46.3 billion in revenues, up by eight percent on strong poultry sales and steady demand for processed meats and dairy, with net income growing by 83 percent to P3 billion.

San Miguel Brewery reported P36.3 billion in sales, with net income inching up by one percent to P6.6 billion. Ginebra San Miguel generated P16.3 billion in revenues, also up by eight percent, while net income grew by 11 percent to P2.1 billion.

Its energy arm, San Miguel Global Power, posted P42.5 billion in revenues, down by four percent year-on-year due to the deconsolidation of the Ilijan Power Plant. The decline was partly offset by strong contributions from its other power facilities and battery energy storage systems.

Operating income rose by 21 percent to P10.7 billion. Reported net income reached P26.4 billion, including a P21.9 billion gain from the asset sale. Excluding the gain, net income was still up by 188 percent to P4.5 billion.

Petron Corp. grew its net income by two percent to P4 billion, backed by strong domestic sales, steady operations and improved margins. Operating income stood at P9.5 billion, while EBITDA remained stable at P13.4 billion.

Revenues declined to P194.4 billion from P227.6 billion a year earlier, mainly due to lower crude prices and softer export sales. Despite this, domestic performance remained strong, with Philippine retail sales rising by 14 percent and commercial sales up by two percent, driven by higher demand and stronger customer engagement.

SMC Infrastructure reported a seven percent rise in first-quarter revenues, driven by the continued growth of its toll road operations. Operating income increased by 10 percent to P5.3 billion, while EBITDA rose by six percent, with margins steady at 78 percent.

SMC’s cement business – including Eagle Cement, Northern Cement and Southern Concrete Industries – reported consolidated revenues of P8.9 billion, down by four percent year-on-year due to lower average selling prices amid heightened competition from imports and soft demand. Despite these challenges, the group eked out a one percent increase in sales volume. Operating income stood at P1.6 billion, while EBITDA declined by five percent to P2.5 billion.