Diversified conglomerate San Miguel Corp. said Thursday net income fell 33 percent in the first half to P19.8 billion from P29.57 billion in the same period last year despite a 73-percent growth in net sales.
San Miguel said first-half recurring net income, which excludes impact of the foreign exchange movement and Corporate Recovery and Tax Incentives for Enterprise Law, jumped 24 percent year-on-year to P32.48 billion.
Net sales rose 73 percent in the first six months to P711.4 billion from P410.1 billion a year earlier on strong performance of core food and beverage, packaging, oil refinery and infrastructure businesses.
“Overall, it’s been a very challenging period, with geopolitical conflict resulting in uncertainties and serious supply and costs issues that are affecting industries all over the world,” San Miguel president and chief executive Ramon Ang said.
“Despite this, and even with the lingering effects of the pandemic, we’re encouraged by the strong and increasing demand for our products and services, as evidenced by our higher volumes and revenues in the first half. This shows that our country’s economic recovery and growth are gaining pace. We will maximize every opportunity to further strengthen our performance in the second half,” Ang said.
San Miguel Food and Beverage Inc. delivered a record-breaking first-half performance, posting its highest level of revenue and profitability since its consolidation in 2018, despite the challenges of high inflation, rising fuel and raw material input prices and currency depreciation.
SMFB’s first-half net income rose 8 percent to P18.75 billion as consolidated revenues climbed 17 percent to P172.1 billion. It said the higher revenues was driven by gains in volume and pricing adjustment across the product portfolios of its beer, spirits and food divisions to mitigate the impacts of input cost increases.
The group’s packaging business also delivered a 10-percent increase in net sales to P16.1 billion while income from operations improved 56 percent to P959 million.
SMC Global Power Holdings Corp. posted a 115-percent decline in net income to P1.8 billion from P12.2 billion in 2021 even as sales rose 70 percent to P102.6 billion.
Petron Corp. nearly doubled its net income in the first half to P7.7 billion from P3.87 billion in 2021. Net sales surged by 130 percent to P398.5 billion from P174.1 billion a year earlier.
SMC Infrastructure also booked net sales of P13.42 billion in the first six months, up 58 percent from P8.48 billion as income from operations jumped 160 percent to P6 billion.