SMC profits surge 120% to P48.2B in 2021

Conglomerate San Miguel Corp. (SMC) saw its bottom line last year jump 120% to P48.2 billion, which is on par with pre-pandemic levels on the back of the strong performance of its businesses despite the lingering COVID-19 crisis.

In a statement, SMC said its group-wide revenues rose 30% to P941.2 billion “driven by higher sales across major businesses.”

The company’s consolidated operating income also climbed 64% to P117.2 billion, resulting from the effective cost management initiatives and enhanced operational efficiencies. 

“Despite the pandemic challenges in 2021, we were able to execute well on our strategies to continue and strengthen our recovery. As we work to overcome the continuing difficulties of the current business environment, we remain committed to investing our resources and capabilities to help further boost economic recovery, improve the lives of more Filipinos, and build back better from this crisis,” said SMC president and CEO Ramon Ang.

“We are confident we can accelerate growth while equally responding to the needs of the environment and the communities we serve,” added Ang.

SMC said its food and liquor businesses both delivered strong recoveries while its fuels business registered a profit turnaround.

In particular, San Miguel Food and Beverage Inc. (SMFB) registered consolidated revenues of P309.8 billion for 2021, up 11% year-on-year as the unit’s food, beer and spirits divisions all turned in solid results, supported by consistent volume recovery throughout the year. 

Despite recurring pandemic lockdowns and liquor bans mandated in key trade areas in 2021, SMFB’s consolidated operating income rose 31% to P43.7 billion, while net income jumped 40% to P31.4 billion.

Meanwhile, SMC Global Power Holdings Corp. delivered offtake volumes of 27,221 gigawatt-hours for 2021, a 4% improvement from 2020. 

Better average spot prices and average bilateral rates, together with increased nominations from customers, brought total revenues to P133.7 billion, up 16% from the previous year. 

Petron Corp. posted a turnaround from its P11.4 billion loss in 2020 as it reported a net income of P6.1 billion in 2021.

Petron’s consolidated sales volumes also grew 5% to 82.2 million barrels, as a result of the easing of restrictions and the gradual re-starting of economic activities which improved demand throughout the year.

SMC Infrastructure, on the other hand, generated revenues of P19.7 billion, up 35% year-on-year as traffic volumes on its toll roads gradually improved. — VBL, GMA News