San Miguel posts P4-B net loss in H1

LISTED San Miguel Corp. ( SMC) announced on Friday that it incurred a net loss of P4 billion in the first semester of 2020, a reversal of the P26.15 billion January- to- June income reported last year, on the impact of the governmentimposed community quarantines on its business.

The top conglomerate also reported that its consolidated revenues declined by 31 percent to P352.8 billion from P509.5 billion year- on- year.

In a disclosure, San Miguel President and Chief Operating Officer Ramon Ang said the “first half was particularly challenging for most in the business sector, but we are seeing strong indications of a recovery for SMC businesses, and we remain focused and determined to build on these gains.”

The “government reopening the economy, and allowing businesses to operate under strict health and safety protocols, was a very good call. Given that we’re still in a pandemic, saving lives is still our priority. As such, we fully support the new modified enhanced community quarantine (MECQ) in support of our medical frontliners,” he added.

Among its subsidiaries, San Miguel Brewery Inc. ( SMB) and Petron Corp. were the worst- hit in the period.

SMB’s consolidated revenues dropped by 39 percent to P42.8 billion as it reeled from the lockdowns and higher excise taxes, while Petron posted a P14.2-billion net loss as global crude prices remained volatile.

“The best thing we can do is to work hard to continue providing essential goods and services to our people while adjusting our operations to fully adhere to the quarantine,” Ang said.

“We are fortunate that during the easing of the quarantine [ from June to early August], we were able to put in place and strengthen strategies that will help us operate better, get our products and services to more customers, support long- term growth, and help boost our economy during these challenging times,” he added.

Despite the pandemic, San Miguel earlier said it would push through with its major infrastructure projects to boost the economy and help generate more jobs.

San Miguel shares gained P1.70 or 1.75 percent to finish at P99 apiece on Friday.