San Miguel’s profit plunges 91% to P1.1b

Conglomerate San Miguel Corp. said Thursday net income fell 91 percent in the first quarter to P1.09 billion from P12.82 billion in the same period last year as the coronavirus pandemic weighed on its overall business.

San Miguel said first-quarter revenues declined by 15 percent to P214 billion from P250.9 billion a year earlier while operating income dropped 62 percent to P11.72 billion from P31.1 billion.

“During these difficult times, we remain steadfast in our commitment to ensure that there is enough food for every Filipino. It is our goal to provide nourishment and safety especially to the most vulnerable communities,” said SMC president and chief operating officer Ramon Ang.

“The road to recovery may be long. However, over the last 130 years, we successfully overcame many challenges. We remain confident that with our strong fundamentals and ability to deliver good and affordable products to our consumers, we will overcome this once again,” he said.

The group’s food and beverage subsidiary San Miguel Food and Beverage Inc. reported a 20-percent decline in income to P5.8 billion.   Sales of beer and spirits were affected by the enhanced community quarantine and the imposition of liquor bans across key cities.

The beer business posted consolidated revenues of P28.4 billion, down 18 percent from the same period last year. Volumes for San Miguel Brewery Inc. went up by single digits in the first two months while the March volumes experienced a drop given the implementation of the ECQ and the resulting liquor bans.

Ginebra San Miguel Inc. also had a good start in the first two months when sales volumes rose 15 percent. It ended the quarter with 14-percent decline.

The food business posted a 2-percent increase in revenues to P33.2 billion on higher sales from protein and animal nutrition business and prepared and packaged food segment.

San Miguel’s packaging business registered a 4-percent decline in net sales to P8.5 billion while income from operation went down by 31 percent to P570 million.

SMC Global Power Holdings Corp. booked a 10-percent drop in net income to P3.2 billion from P3.5 billion a year ago as revenues went down by 18 percent to P28.3 billion.

Petron Corp. reported a net loss of P4.87 billion in the first quarter as sales declined by 16 percent to P104.6 billion.

Infrastructure arm San Miguel Infrastructure also booked a 27-percent drop in sales to P4.6 billion while income from operations decreased by 43 percent to P1.77 billion.

Topics: San Miguel Corp. , SMC , net income
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