SAN Miguel Corp. (SMC) recorded a sharp jump in its first-quarter net income to P43.4 billion, a nearly fivefold increase from P8.9 billion in the same period last year, driven by one-off gains from the partial sale of power assets and favorable foreign exchange movements.
Excluding these non-recurring items, the conglomerate’s core net income rose 31 percent to P19.0 billion, fueled by improved margins and solid performance across its major businesses, alongside disciplined cost controls.
Consolidated revenues fell 8 percent year-on-year to P360.9 billion, dragged down by weaker crude prices that hit the Fuel and Oil segment, and the deconsolidation of the Ilijan Power Plant.
These were partially offset by stronger results from the Food, Hard Liquor, and Infrastructure businesses.
Operating income rose 13 percent to P45.6 billion, while EBITDA grew 17 percent to P64.2 billion.
“We had a good start to the year. Despite some challenges, our businesses remained resilient and continued to perform well,” said SMC president and CEO Ramon S. Ang.
Food and Beverage
San Miguel Food and Beverage Inc. posted a 4-percent revenue increase to P98.9 billion.
Gross profit climbed 11 percent to P28.6 billion, with operating income and net income up 16 percent to P15.2 billion and P11.6 billion, respectively.
San Miguel Foods led growth with an 8-percent revenue increase to P46.3 billion, driven by strong poultry and processed meat sales. Net income surged 83 percent to P3.0 billion.
San Miguel Brewery reported P36.3 billion in revenues and a P6.6 billion net profit, up 1 percent. Ginebra San Miguel’s sales rose 8 percent to P16.3 billion, with a corresponding 11-percent increase in net income to P2.1 billion.
Power
San Miguel Global Power saw revenues decline 4 percent to P42.5 billion following the Ilijan plant deconsolidation, but operating income rose 21 percent to P10.7 billion.
Including the P21.9 billion gain from the asset sale, net income reached P26.4 billion. Excluding this, net profit still surged 188 percent to P4.5 billion.
Fuel and Oil
Petron Corp. posted a modest 2-percent rise in net income to P4.0 billion, supported by strong domestic sales and improved margins, even as revenues declined to P194.4 billion due to lower global crude prices. Domestic retail sales grew 14 percent and commercial sales rose 2 percent.
Infrastructure
SMC Infrastructure reported 7-percent revenue growth, powered by the continued expansion of its toll road operations. Operating income increased 10 percent to P5.3 billion, with EBITDA up 6 percent and margins steady at 78 percent.
Cement
SMC’s cement unit, composed of Eagle Cement, Northern Cement, and Southern Concrete Industries, posted P8.9 billion in revenues, down 4 percent amid softer demand and increased import competition. However, sales volumes inched up 1 percent. Operating income reached P1.6 billion, while EBITDA slipped 5 percent to P2.5 billion.
