San Miguel net income surges 67% to P44.7B

CONGLOMERATE San Miguel Corp. (SMC) on Thursday said its consolidated net income for 2023 surged by 67 percent to P44.70 billion from P26.80 billion, driven by significant volume growth across its key businesses.

A strategic focus on operational efficiencies and sustainability initiatives contributed to a 34-percent rise in consolidated operating income to P144.50 billion, it said.

“Our robust performance again reflects our resilience and ability to deliver a strong bottom line despite macroeconomic uncertainties, and our commitment to continue investing in nationbuilding projects,” San Miguel President and Chief Executive Officer Ramon Ang said.

The food and beverage segment generated revenues of P379.80 billion, up 6 percent from the previous year, with all business units reporting sales growth on improved volumes and pricing strategies. This resulted in net income rising 10 percent to P38.10 billion.

San Miguel Beer reported an 8-percent increase in consolidated sales to P147.30 billion, fueled by sales growth in both the domestic and international markets of 8 percent and 7 percent, respectively. Domestic sales volumes, however, were still 25 percent below pre-pandemic levels.

The beer segment posted a net income of P25.30 billion the year, up 16 percent versus 2022, on better operating performance and higher interest income.

Ginebra San Miguel Inc.’s revenues reached P53.60 billion, up 13 percent from last year due to “record-high” volumes, resulting in a net income of P7 billion, up 55 percent year on year.

The food group booked revenues of P178.8 billion, up 2 percent year on year.

The power segment reported a 23-percent decline in revenues to P169.60 billion on lower contracted volumes and prices due to reduced fuel tariffs. But its net income tripled to P9.90 billion from 2022’s P3.10 billion on better operating income and foreign exchange gains.

For the fuel and oil segment, Petron Corp. reported revenues of P801 billion, down 7 percent, as prices continued to correct from record-high levels in 2022, despite higher volumes.

The full-year average price of benchmark Dubai crude stood at $82 per barrel in 2023, down 15

percent from $96 in 2022.

Petron still booked a net income of P10.10 billion, up 51 percent from 2022’s P6.70 billion, on sustained demand recovery and delivered combined sales volumes of 126.9 million barrels, 13 percent higher than in 2022.

In the infrastructure segment, SMC Infrastructure posted consolidated revenues of P34 billion, up 17 percent, on sustained growth across all operating toll roads as traffic volumes increased by 8 percent. Net income here grew 33 percent to P11.4 billion.

San Miguel’s cement business, comprising Eagle Cement Corp., Northern Cement Corp. and Southern Concrete Industries Inc., registered consolidated revenues of P37.20 billion, driven by the full-year consolidation of Eagle in 2023 and the start of commercial operations of a new facility in Davao del Sur.

The cement group booked an operating income of nearly P6 billion, reversing the losses registered last year.

Looking ahead, San Miguel said it remained confident in its ability to efficiently manage its businesses and continue to deliver sustainable value amid continuing market uncertainties.

It also expressed optimism that the country’s robust macroeconomic fundamentals and SMC’s strategy, anchored on a sustainability agenda, will sustain its growth momentum throughout 2024.

San Miguel shares fell 40 centavos, or 0.39 percent, to close at P101.10 each on Thursday amid a 0.04-percent rise for the main index.