Diversified conglomerate San Miguel Corp. saw its net income soar by 1,471 percent in the first quarter to P17.17 billion from P1.1 billion in the same period last year on the strong recovery of core units amid the pandemic.
San Miguel said in a statement Thursday net sales fell 6 percent in the first three months to P201.1 billion from P214 billion a year ago. Income from operations jumped 175 percent to P32.2 billion from P11.72 billion on lower raw material costs and effective cost saving efforts of the company.
“We’re encouraged by these improvements, as they reflect that our businesses are definitely headed towards full recovery. Despite the challenges ahead, we’re determined to sustain our performance and continue taking on meaningful projects and investments that will help our economy recover,” said San Miguel president and chief operating officer Ramon Ang.
Food and beverage unit San Miguel Food and Beverage Inc. delivered a net income of P9.67 billion in the first quarter, up 66 percent from a year ago, on the back of an 11-percent increase in sales to P76.3 billion.
Power generation arm SMC Global Power Holdings Corp. posted a 141-percent increase in first-quarter net income to P7.77 billion even as net sales dipped 3 percent to P27.36 billion.
Oil unit Petron Corp. booked a net income of P1.7 billion in the first quarter, a turnaround from the P4.8-million net loss in the same period last year. Net sales, however, were still down by 20 percent to P83.3 billion.
SMC Infrastructure posted net sales of P4.3 billion, down 7 percent, because of mobility restrictions. Income from operations dropped 33 percent to P1.18 billion.
San Miguel packaging group recorded a 13-percent decline in first-quarter net sales to P7.3 billion as income from operations declined 31 percent to P393 million .
The conglomerate last month reported plans to raise up to P30 billion from the issuance of fixed-rate retail bonds. The P20-bond offering with an oversubscription option for another P10 billion will be issued from the company’s P50-billion bond shelf registration program filed with the Securities and Exchange Commission.
Net proceeds from the fund raising activity will be used for the re-denomination of dollar obligations.