First quarter results are in: San Miguel Corp. profits hit P17.2 billion

May 7, 2021

WHEN THE buzzer sounded on the first quarter of the year, SMC headed back to the bench pocketing a tidy P17.2 billion in net income.

That’s a 1,471 percent increase over the same period last year.

In a financial report released yesterday, May 6, the Ramon S. Ang-led conglomerate reported that most of its business units ended the first three months of 2021 on a strong note.

Ginebra San Miguel, parent company of the Gin Kings, had a net income of P1.04 billion, a 120 percent increase over the same period last year. It was also the company’s highest jump in a single quarter.

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    SMC noted that GSM’s strong performance “was brought about by a combination of strong consumption, wider distribution, better selling prices, and lower alcohol cost.”

    Meanwhile, San Miguel Foods — which operates the Magnolia brand, among many others — also saw a spectacular leap in income. It posted a net income of P3.39 billion, a 107 percent growth compared to last year’s P1.64 billion.

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    San Miguel Brewery, which manufactures San Miguel Beer, Red Horse, and other popular beers, improved its first quarter income by 45 percent year-on-year, jumping to P5.5 billion.

    However, SMB was one of the three subsidiaries (along with Petron Corp. and SMC Infrastructure) cited as a business unit whose operations continue to be adversely affected by pandemic restrictions. As a whole, first-quarter consolidated revenues dipped by 6 percent, from P214.07 billion last year to P201.2 billion this year.

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    However, post-pandemic recovery was strong across the board, as the company’s operating income surged 175 percent to P32.2 billion — thanks, SMC said, to lower costs of raw materials and general cost-saving measures. (Operating income is calculated by subtracting operating expenses and cost of goods sold from your gross income.)

    “We’re encouraged by these improvements, as they reflect that our businesses are definitely headed towards full recovery,” said San Miguel president and chief operating officer Ang.

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    He added: “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.”

    At the stock exchange, San Miguel shares improved by P0.30 at Thursday’s close.

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