San Miguel posts P29.6B net profit in H1

Diversified conglomerate San Miguel Corp. (SMC) saw a turnaround from financial loss to profitability in the first six months of 2021 on the back of strong recovery across its business despite the lingering economic impact of the COVID-19 pandemic.

In a disclosure to the Philippine Stock Exchange, SMC reported a net income of P29.6 billion for the January to June period, a reversal from the P4-billion net loss seen in the same period in 2020.

The company’s consolidated revenues grew 16% to P410.1 billion, “driven by higher sales from Petron Corp., up by 14%, SMC Global Power by 5%, SMC Infrastructure by 27%, and San Miguel Food and Beverage by 20%.”

Likewise, operating income surged by 309% to P61.0 billion, “brought about by improved margins, effective company-wide cost savings initiatives, and continuous improvements in operational efficiencies.”

Earnings before interest, taxes, depreciation and amortization (EBITDA) stood at P80.7 billion, up 91% year-on-year from P42.2 billion.

“While there is no doubt that the uncertainties brought about by the pandemic will continue to have an impact on our businesses, our strong performance in the first half reflects the effectiveness of the strategies we’ve put in place and our ability to quickly adapt to the evolving needs of our consumers,” said SMC president Ramon Ang.

“Vaccinating our employees against COVID-19 is a crucial part of our strategy for sustainable long-term recovery. With the arrival of our company-procured vaccines--enough to cover over 70,000 in our network--our nationwide vaccination drive is now in full gear. We now have 15 operational vaccination sites all over the country, with a remaining two more set to open. Our goal is to reach herd immunity at all our facilities so we can better perform our jobs, sustain our performance, and contribute to economic recovery,” Ang said.

The SMC chief said the re-imposition of a lockdown for two weeks is an opportunity for the company to respond in terms of immediate relief for disadvantaged communities, supply much-needed essential goods and services, and help protect the country’s social and economic gains in the continuing fight against the pandemic. —NB, GMA News