San Miguel books P44.7-billion net income in 2023, up 67%

Diversified conglomerate San Miguel Corporation (SMC) saw its bottom line grow by double-digits last year driven by robust growth across its businesses.

In a disclosure to the Philippine Stock Exchange, SMC reported a consolidated net income of P44.7 billion, up 67% year-on-year.

The conglomerate led by tycoon Ramon Ang said the high double-digit earnings growth was driven by significant volume growth across its key businesses, including San Miguel Brewery Inc (SMB), Ginebra San Miguel Inc. (GSM), Petron, and SMC Infrastructure, together with the integration of Eagle Cement Corporation's financial results.

SMC posted an EBITDA or earning before interests, taxes, depreciation and amortization of P205.3 billion, up 34% year-on-year.

“Our robust performance again reflects our resilience and ability to deliver a strong bottom line despite macroeconomic uncertainties, and our commitment to continue investing in nation-building projects,” said Ang, SMC’s president and CEO.

SMC’s food and drinks manufacturing arm, San Miguel Food and Beverage Inc. (SMFB), generated revenues of P379.8 billion, up 6% from a year earlier on account of improved volumes and pricing strategies.

San Miguel Brewery, maker of San Miguel Pale Pilsen, saw its consolidated sales grow by 8% to P147.3 billion fueled by an 8% and 7% sales growth in the local and international markets, respectively. 

SMB’s domestic sales volumes, however, were still 25% below pre-pandemic levels, according to SMC.

GSM, meanwhile, booked revenues of P53.6 billion, up 13%year-on-year  as it hit record-high volumes in 2023, driven by efforts to enhance brand equity through consistent advertising, consumer promotions, and expanding market reach.

San Miguel Food Group also saw its revenues reach P178.8 billion, up 2% from a year earlier amid strategic pricing across segments, complemented by aggressive marketing to stimulate demand.

San Miguel Global Power, on the other hand, reported a 23% decline in revenues to P169.6 billion, as a result of lower contracted volumes, and prices due to reduced fuel tariffs.

Petron saw its bottom line grow 51% to P10.1 billion as the fuel retailer delivered combined sales volumes of 126.9 million barrels last year, 13% higher than the 112.8 million barrels sold in 2022, fueled by its wide presence and effective volume-generation strategies both in the Philippines and Malaysia.

SMC’s infrastructure business, likewise, registered consolidated revenues of P34.billion, up 17% year-on-year on the back of sustained growth across all operating toll roads. 

SMC’s cement business composed of Eagle Cement Corporation, Northern Cement Corporation, and Southern Concrete Industries Inc., registered a combined consolidated revenues of P37.2 billion, increasing four-folds year-on-year “mainly due to the full-year consolidation of Eagle in 2023, and the start of commercial operations of our new facility in Davao del Sur. — BM, GMA Integrated News