San Miguel Corp. (SMC) said Thursday its 2023 consolidated net income jumped 67 percent P44.7 billion from a year ago.
The conglomerate said this was driven by significant volume growth across its key businesses, including San Miguel Brewery Inc., Ginebra San Miguel Inc., Petron Corp. and SMC Infrastructure, together with the integration of Eagle Cement Corp.’s financial results.
SMC said its strategic focus on operational efficiencies and sustainability initiatives contributed to a 24-percent increase in earnings before interest, taxes, depreciation and amortization (EBITDA) to P205.3 billion and a 34-percent rise in consolidated operating income to P144.5 billion.
“We had a strong finish to 2023, which was marked by a healthy operating income and EBITDA, thanks to our continuous efforts to maximize operational efficiencies, aligned with our sustainability agenda. Our robust performance again reflects our resilience and ability to deliver a strong bottom line despite macroeconomic uncertainties, and our commitment to continue investing on nation-building projects,” SMC president and chief executive Ramon Ang said in a statement.
The group said it remains confident in its ability to efficiently manage its business and continue to deliver sustainable value amid continuing market uncertainties. It expressed optimism that the robust macroeconomic fundamentals and its strategy, anchored on sustainability agenda, would sustain growth momentum throughout 2024.
San Miguel Food and Beverage Inc. (SMFB) delivered outstanding financial results, with revenues rising 6 percent to P379.8 billion from the previous year. All business units reported sales growth on account of improved volumes and pricing strategies.
SMFB’s EBITDA went up 7 percent to P66.8 billion, while net income jumped 10 percent to P38.1 billion, the highest achieved by the group since the company’s consolidation in 2018.
SMB reported an 8-percent increase in consolidated sales to P147.3 billion, fueled by an 8-percent and 7-percent sales growth in the local and international markets, respectively. Domestic sales volumes, however, were still 25-percent below pre-pandemic levels. Net income reached P25.3 billion, up 16 percent from the previous year.
GSMI’s revenues amounted to P53.6 billion, up 13 percent from 2022 as it hit record-high volumes in 2023.
The food group logged revenues of P178.8 billion, up 2 percent from the previous year. This was achieved through strategic pricing across segments, complemented by aggressive marketing to stimulate demand.
San Miguel Global Power reported a 23-percent decline in revenues to P69.6 billion, as a result of lower contracted volumes and prices due to reduced fuel tariffs. Newcastle coal indices averaged $172.79 per metric tons in 2023, compared to $360.19/MT in 2022.
Petron’s continuing efforts to sustain demand recovery, optimize assets and resources and respond to market volatility, resulted in a 60-percdent improvement in operating income to P30.7 billion from P19.2 billion in 2022. Net income amounted to P10.1 billion, or 51 percent higher than P6.7 billion reported in the previous year.
SMC Infrastructure registered consolidated revenues of P34.0 billion, or 17-percent higher than the previous year.
The cement business, comprised of Eagle Cement Corp., Northern Cement Corp. and Southern Concrete Industries Inc., registered a four-fold growth in consolidated revenues to P37.2 billion in 2023, 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.
EBITDA grew substantially to P9.5 billion from P532.3 million in the previous year.