San Miguel Q1 net income down 18%

Diversified conglomerate San Miguel Corp. (SMC) on Thursday reported a double-digit drop in its bottom line in the first quarter, dragged by the oversupply of poultry products and the volatility of global crude prices.

In an emailed statement, SMC reported an 18% drop in its net income to P12.8 billion, even as consolidated revenues rose 7% to P250.9 billion.

During the quarter, San Miguel Food and Beverage Inc. saw its operating income down at P10.8 billion, due to an oversupply and a significant decline in poultry prices.

Meanwhile, Petron Corp. lost 5% in its volume for its Philippine operations, following the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) Law.

"The slowdown in these businesses is temporary. We are not taking them lightly and we’re seeing clear signs of recovery. We anticipate higher consumer spending from an improving economy, primarily the easing of inflation," SMC president and COO Ramon Ang said.

According to the latest data from the Philippine Statistics Authority (PSA), inflation decelerated for the sixth consecutive month in April to mark the slowest pace of 3.0% in 16 months.

"The election season also usually brings us good results. We’ve implemented a good number of measures to recover lost ground and further strengthen our competitive positions in industries where we are in," added Ang.

In terms of the group's power business, SMC Global Power Holdings Corp. saw its operating income rise by 23% to P9.8 billion, as more plants contributed to revenues.

SMC Infrastructure likewise registered a slight increase in its operating income which rose 1% to P3.1 billion.

Shares of San Miguel closed Thursday at P195.00 apiece, up by P7.50 or 3.99% from Wednesday's P188.00 —LDF, GMA News