SMC’s pandemic recovery gains speed records P17.2B profits in Q1

SMC’s pandemic recovery gains speed records P17.2B profits in Q1

MANILA — Building on its momentum in the 2nd half of 2020, SMC reported a net income of P17.2 billion for the first quarter of 2021,15x better than the P1.1 billion it registered for the same period last year, further strengthening its recovery from the COVID-19 pandemic.

Almost all major businesses saw significant recoveries in the first three months, led by Petron Corp. and San Miguel Foods. Ginebra San Miguel Inc. and SMC Global Power likewise registered strong growth.

“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 SMC President and COO Ramon S. Ang.

Meanwhile, consolidated revenues for the first quarter amounted to P201.2 billion, down by 6% versus the comparable period in 2020, as volumes of Petron, San Miguel Brewery and SMC Infrastructure were still affected by prevailing restrictions. This was, however, still an improvement from the decline in the 1st quarter and full-year 2020 at 15% and 29%, respectively.

With lower raw material costs and effective cost-saving efforts, consolidated operating income reached P32.2 billion, a 175% surge from the previous year.

EBITDA ended at P41.0 billion, up 52% from the first quarter of last year.


San Miguel Food and Beverage, Inc.’s (SMFB) first-quarter consolidated revenues grew 11% to P76.4 billion. This was attributable to sustained all-time high volumes from the Spirits division and higher sales from the Food and Beer divisions.

SMFB’s consolidated operating income and net income reached P12.6 billion and P9.7 billion, notable increases of 45% and 66%, respectively.

San Miguel Brewery Inc.

San Miguel Brewery, Inc. (SMB) recorded consolidated revenues of P28.8 billion for the first quarter, a 2% improvement from last year, while consolidated volumes, which continue to be affected by various quarantine restrictions and liquor bans in the domestic operations, ended at 51.5 million cases, down by 11%. Nevertheless, SMB’s operating income grew 25% to P6.8 billion on the back of effective cost management efforts. Net income increased 45% from the same period last year to P5.5 billion.

Ginebra San Miguel Inc.

Ginebra San Miguel Inc. achieved a net income of P1.0 billion for the first quarter, up 120% year-on-year–its highest ever in a single quarter. Consolidated revenues and operating income reached P11.3 billion and P1.3 billion. The boost in performance was brought about by a combination of strong consumption, wider distribution, better selling prices, and lower alcohol cost.

San Miguel Foods

San Miguel Foods contributed to SMC’s solid first-quarter performance with consolidated revenues up of P36.2 billion, up 9% versus the comparable period in 2020. Revenues from the Protein, Animal Nutrition & Health, and the Prepared & Packaged segments increased by 11%, 13% and 6%, respectively.

San Miguel Foods’ strong performance was supported by the steady growth of its network of community resellers as well as newly launched products in the seafood and plant-based categories.


SMC Global Power Holdings Corp. reported revenues of P27.4 billion. The amount is slightly lower compared to last year’s results as off-take volumes of 6,344 Gwh declined by 5%. This was mainly due to continuing quarantine restrictions and lower spot sales, which were mitigated by higher average realization prices.

Operating income year-on-year grew 8% to P8.4 billion, brought about by lower fuel costs and operating expenses. Net Income stood at P7.8 billion.


Petron Corporation bolstered its rebound with a reported net income of P1.7 billion, a significant reversal of its P4.9 billion net loss in the first quarter of last year. While sales volumes continue to improve, the slowdown in demand due to the COVID-19 pandemic is still evident in 1Q volumes of 19.4 million barrels, 21% lower than the 24.7 million barrels sold in the same period in 2020. Consolidated revenues settled at P83.3 billion, down 20% from P104.6 billion a year ago.

Operating income reached P3.7 billion, up from last year’s operating loss of P4.4 billion. This was mainly due to an inventory gain this quarter, in contrast with an inventory loss in the same period last year, resulting from improvements in international oil prices.


SMC Infrastructure’s revenues for the first quarter stood at P4.3 billion, down 7% versus the same period last year. Average daily traffic has been improving since December despite prevailing travel restrictions. SLEX and Star tollways, in particular, registered higher average daily traffic volumes compared to the first quarter of last year.

Operating income amounted to P1.2 billion, a decline of 33% year-on-year, resulting from lower revenues and higher operating expenses. (AI/MTVN)

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