San Miguel posts double-digit drop in Q1 earnings

Diversified conglomerate San Miguel Corporation reported a double-digit drop in its earnings for the first quarter of the year, due to adverse conditions brought about by the coronavirus disease.

In an emailed statement, SMC said is earnings before interest, taxes, depreciation, and amortization (EBITDA) fell 34% to P27 billion in the first quarter.

Consolidated revenues likewise posted a 15% drop to P214 billion in the same three-month period versus the comparable period in 2019.

SMC attributed the decline to the impact of COVID-19 pandemic, with the implementation of lockdowns starting mid-March.

Metro Manila and other "high-risk" areas have been on lockdown since March 17. A modified enhanced community quarantine (MECQ) has been placed from May 15 to last until May 31. Liquor bans have also been implemented in select areas.

All of the company's businesses—food and beverage, packaging, power, fuels, and infrastructure—reported a decline in revenues during the quarter.

"This is an unprecedented crisis we are in, and many countries all over the world continue to struggle to cope. Like most big and small businesses in the Philippines, we are also affected but we maintained our focus on cost reduction and cash preservation amid the COVID-19 crisis," said president and chief operating officer Ramon Ang.

"Right now, our priority is really to ensure the continuous and efficient delivery of our products and services for the people, strengthen and expand new programs we’ve initiated during this crisis that have worked for us, implement our plan to safely bring our workforce back, and continue to help the country manage the impact of this pandemic," he added. — BM, GMA News