SMC recovered big in Q4, but 2020 profit down 55%

Conglomerate San Miguel Corp.’s (SMC) earnings in the fourth quarter last year beat prepandemic levels as the reopening of the domestic economy allowed the company to reverse the slump seen in the first semester when the most stringent quarantine protocols were in place.

SMC posted a fourth quarter net profit of about P11.17 billion, 25.8-percent better than what was seen in the last quarter of 2019 when the COVID-19 pandemic had yet to erupt. This brought 2020 net profit (including earnings attributable to minority interest) to P21.9 billion, down by about 55 percent from the previous year’s level.

Despite the economic recession arising from the pandemic, however, SMC posted a net profit of P25.9 billion in the second semester—seven times better than the first semester output and 15 percent better than the earnings in the same period in 2019.

“While it has not been a good year for all businesses and our economy overall, we’re encouraged by the sustained recoveries that our businesses showed in the second half. There are still so many challenges ahead and a lot of uncertainty. But we believe our economic recovery is underway as the vaccine rollout gathers pace,” SMC president and chief operating officer Ramon S. Ang said on Thursday.

SMC reported sales and margin improvements in the second half, reducing full-year earnings downturn. Consolidated revenues and operating income for the full year ended at P725.8 billion and P71.5 billion, respectively, down by 29 percent and 38 percent from the previous year.