"The pandemic mess could have been worse, were it not for the Herculean efforts of these companies and their incredible resilience."
"The pandemic mess could have been worse, were it not for the Herculean efforts of these companies and their incredible resilience."
Just five families or groups own the ten largest public corporations in the Philippines—Ramon S. Ang (RSA), the family of the late Henry Sy Sr., the group of Manuel V. Pangilinan of First Pacific Ltd Hongkong, the venerable Zobel de Ayala family, and the family of the late John Gokongwei Jr.
These families or groups are at the forefront of the private sector’s response to the worst health crisis and recession in the Philippines’ history. The pandemic mess could have been worse, were it not for the Herculean efforts of these companies and their incredible resilience.
Have faith in them. The future can only be better.
If local tv could devote just five minutes of their prime time daily to the exploits of our leading tycoons and taipans, instead of wasting endless precious hours on the scandals, inanities, and wayward ways of our so-called actors and entertainers, the morale of our people could have been much higher.
RSA controls and manages four of the Ten Largest Philippine listed corporations—No. 1 in revenues, San Miguel Corp. (P725.79 billion), No. 2 Top Frontier Investment Holdings, Inc., (P725.77 billion); No. 4 Petron Corp. (P287 billion); and No. 5 San Miguel Food and Beverage, Inc. (P279 billion, the beer and food company).
Despite huge revenue declines in 2020, RSA has displayed unusual visioning and resilience to keep the SMC group on track to achieve its long-term growth objectives and make life better for most Filipinos.
After falling 55 percent in the whole of 2020 to P21.87 billion, SMC profits in the first quarter this year leaped a dizzying 1,467 percent to P17.2 billion, a 16-fold jump. If that trend continues, San Miguel could report P50 billion in profits, or maybe even P60 billion, for the whole of 2021.
Ramon is rushing the ground preparation for the P740-billion Bulacan airport said to be among the best and most modern airports in Asia when completed in five years. The hope is that President Duterte could see the makings of the proposed airport on solid ground before he leaves office on June 30, 2022.
RSA today is the Philippines’ biggest and fastest-growing infra builder. SMC has the technology and resources to build a four-lane highway at the rate of 200 kms a year. In addition to the Bulacan airport, he is connecting Manila to scenic Pagudpud, Ilocos Norte in the north to charming Matnog, in Sorsogon, a distance of more than 1,145 kms
Meanwhile, the Sy family owns majority of No. 3 largest listed company in revenues, their holding company SM Investments Corp.(P394 billion, down 21 percent). SMIC is also the largest company in market value (P1.1 trillion), and the most profitable listed company in 2020 and 2019. Their financial house, No. 8 company in revenues, BDO Unibank, Inc., is the country’s No. 1 (assets, loans, capital, profits, trust funds). Tatang Henry’s eldest child, Tessie Sy Coson, is vice chair of SMIC and chair of BDO. The SM retail stores still got it all while BDO still finds ways, marvelously.
As the managing director and CEO of the 40-year-old Hong Kong-based holding company First Pacific Ltd, MVP controls the electricity distribution monopoly No. 6, Manila Electric Co. (where First Pacific owns 19.6 percent) and No. 11, telco giant PLDT, Inc.(where FP owns 25.6 percent). FP is owned 44.4 percent by the Salim group of Indonesia.
With a P94-billion difference in revenues, Meralco (P275.3 billion; bar topnotcher Ray C. Espinosa is president and CEO) is now the MVP group’s flagship, with PLDT (P181 billion; management whiz kid Al Panlilio is the new president and CEO) a decent second.
Still, PLDT (P24.58 billion) remains the top moneymaker of the MVP group as Meralco made only P16 billion profits in 2020. Despite the pandemic PLDT had its best year in 2020.
Pangilinan is chair of both Meralco and PLDT. His Metro Pacific, owned 43.1 percent by FP, owns 45.5 percent of Meralco, 100 percent of generation giant Global Business Power, and majority of water utility Maynilad.
With $3.5 billion annual revenues and on track to make P30 billion in profits this year, PLDT is the Philippines’ largest and best telco and claims to deliver the finest customer experience in the market. PLDT also accounts for 30 percent of FP’s gross asset value, globally.
Gokongwei’s JG Summit is the third largest holding company in the Philippines. It is now helmed by the late John’s only son, the brainy Lance Gokongwei, the president and CEO. JG Summit owns minority but influential stakes in both Meralco (29.6 percent) and PLDT (11.3 percent), making the group hugely diversified and helping Pangilinan chart the direction of sprawling First Pacific enterprises locally.
Lance is focused that JG Summit remains the leader or a strong second in airline (67.9 percent ownership in Cebu Pacific), food (55.3 percent in URC), real estate (61 percent in Robinsons Land), with strategic interests in hotels, telco, power generation, banking, and petrochemicals.
PLDT and Gokongwei’s Universal Robina were the only two companies in the 25 Most Profitable Public Companies that did not report a profit drop in 2020. PLDT’s 2020 net of P24.58 billion was up 7.87 percent over 2019; URC’s P11.62 billion net was a hefty 15 percent gain from 2019’s P10.11 billion.
Ayala Corp. does not have the revenue scale of its bigger rivals; it is just No. 9 in sales, P193.6 billion in 2020, down 27 percent; profits fell 30 percent to P29.27 billion. B
But the Zobel de Ayala firm, the oldest commercial house, is high in the esteem of investors. It is No. 2 to SMIC in market value, with P489.55 in market cap.
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