San Miguel Corp.’s first quarter profits fell 19 percent from a year earlier but the diversified conglomerate saw a 57 percent jump in sales on better selling prices across its key business units.
SMC posted a net income of P13.9 billion compared to P17.17 billion a year ago while net sales surged to P316.8 billion from only P201.16 billion despite the Omicron surge in January and the volatile global commodities markets that continue to drive up prices of raw materials.
“Overall, we are off to a good start this year, with volumes and revenues showing robust growth. While we are still seeing mixed results from our businesses due to the Omicron surge disruption at the start of the year and significant increases in raw material prices, we are well-positioned to build on our gains.
Economic activity is returning to pre-pandemic levels, our workforce has been fully vaccinated, and we have managed to keep the virus under control. With these, we are confident we can sustain our target levels of growth, ” said SMC president and CEO Ramon S. Ang.
San Miguel Food and Beverage reported a five percent drop in first quarter net income to P9.15 billion, weighed down by rising input costs on raw materials and utilities. Net sales, however, went up nine percent to P83.05 billion.
San Miguel Brewery likewise saw a 10 percent decline in bottomline to P4.9 billion. Revenues increased by only three percent to ₱29.7 billion, largely due to growth in its international operations, coupled with the domestic price increase implemented starting October last year, which compensated for lower volumes caused by the lockdowns in January due to Omicron surge.
Ginebra San Miguel Inc., meanwhile, shrugged off Covid-19 blues as net income expanded by 34 percent to P1.4 billion as revenues increased by 11 percent to P12.6 billion on continuing cost management and innovative brand building initiatives.
SMC Global Power Holdings Corp. struggled in the first quarter with net income declining by 75 percent to P1.93 billion.
Petron Corp., on the other hand, made a strong start to the year, with earnings more than doubling to P3.6 billion amid a recovery in demand and higher international prices.
SMC Infrastructure also opened 2022 strong with revenues expanding by 44 percent to P6.2 billion, driven by higher traffic flows.