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SMC 2022 income hit by debt revaluation

Diversified conglomerate San Miguel Corp. (SMC) posted a 60% increase in its top line in the previous year, but its net income was hit by unrealized losses on the revaluation of its foreign debt.

In an emailed statement, SMC said its consolidated core net income stood at P43.2 billion, and reported net income at P26.8 billion. It saw a P48.2-billion net income in 2021.

“While challenges remain, we’re confident in the measures and programs we’ve put in place to weather these,” SMC president and chief executive officer Ramon Ang said.

“We remain strongly committed to executing on the long-term growth strategy we’ve laid out for our company, that will also significantly benefit our country,” he added.

SMC reported consolidated revenues of P1.5 trillion in 2022, up from P941 billion in 2021 and higher than the P1.0 trillion recorded in 2019 prior to the COVID-19 pandemic.

“Our strong top line performance is a clear indication of our economy’s continuous recovery as well as the strong consumer demand for our products and services,” Ang said.

The Philippine economy grew by 7.6% in 2022, higher than the government’s revised target range of 6.5% to 7.5%. Inflation averaged 5.8%, higher than the target range of 2% to 4%.

Its subsidiaries reported improvements in their net income — San Miguel Food and Beverage Inc. 10% up to P34.7 billion, San Miguel Brewery Inc. up 6% to P21.8 billion, and Ginebra San Miguel Inc. up 9% to P4.5 billion.

Increases were also seen in the bottom line of San Miguel Foods up 21% to P9.2 billion, Petron Corp. up 9% to P6.7 billion, and SMC Infrastructure operating income up 110% to P14.2 billion.

San Miguel Global Power Holdings Corp. reported an 80% decline in its net income to P3.1 billion, reflecting the impact of higher fuel costs, exposure to the Wholesale Electricity Spot Market (WESM), and the deration of the Ilijan power plant.

SMC’s product portfolio includes beet, spirits; non-alcoholic beverages; poultry; animal feeds; flour, fresh, and processed meats; dairy products; coffee; packaging products; refined petroleum products; and cement.

Shares in the company closed Thursday at P110.00 apiece, unchanged from Wednesday.—AOL, GMA Integrated News