SMC Q1 net income soars to P43.4B on forex, asset gains

ANG-LED conglomerate San Miguel Corp. (SMC) reported a sharp increase in its first-quarter net income to P43.4 billion from P8.9 billion a year earlier, fueled by foreign exchange (forex) gains and a one-time gain from the partial sale of power assets, despite a decline in consolidated revenue.

Core net income rose by 31% to P19 billion, supported by cost management efforts and improved performance across most core businesses, SMC said in an e-mail statement on Wednesday.

Revenue declined by 8% to P360.9 billion, weighed down by lower crude prices and reduced contributions from the power business following the deconsolidation of the Ilijan Power Plant.

The decline was partially offset by stronger sales from the food, hard liquor, and infrastructure units.

Operating income increased by 13% to P45.6 billion, while consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 17% to P64.2 billion.

For its food and beverage business, San Miguel Food and Beverage, Inc. recorded a 16% increase in net income to P11.6 billion, as consolidated revenue grew by 4% to P98.9 billion.

San Miguel Foods saw an 83% jump in net income to P3 billion, driven by an 8% rise in revenue to P46.3 billion on strong poultry sales and steady demand for processed meats and dairy products.

San Miguel Brewery, Inc. posted a 1% increase in net income to P6.6 billion, with sales reaching P36.3 billion.

Ginebra San Miguel, Inc. reported an 11% growth in net income to P2.1 billion as revenue climbed by 8% to P16.3 billion.

San Miguel Global Power Holdings Corp. generated P26.4 billion in net income. Revenue fell by 4% to P42.5 billion, reflecting the impact of the Ilijan Power Plant deconsolidation.

Petron Corp., which leads SMC’s fuel and oil segment, posted a 2% increase in net income to P4 billion. Revenue dropped to P194.4 billion, weighed by lower crude prices and softer export sales.

SMC Infrastructure recorded a 7% rise in revenue, led by continued growth in toll road operations. Operating income improved by 10% to P5.3 billion.

The conglomerate’s cement business reported a 4% decline in revenue to P8.9 billion, reflecting lower average selling prices amid heightened import competition and soft demand.

The business includes Eagle Cement, Northern Cement, and Southern Concrete Industries.

SMC shares rose by 0.19% or 15 centavos to P78.75 apiece on Wednesday. — Revin Mikhael D. Ochave