San Miguel profit slides in 2020 despite H2 gains

The coronavirus pandemic slashed San Miguel Corp.’s net income by more than half to P21.9 billion last year, even if it rebounded in the second half.

This March 12, 2021 photo shows part of San Miguel Corp.’s headquarters in Mandaluyong City. PHOTO BY RUY MARTINEZ

In a disclosure, the Ang-led conglomerate said the amount was a 55-percent decrease from P48.6 billion in 2019. It attributed the decline to the Covid-19-induced economic contraction and the restrictive measures the government imposed to curb the disease’s spread.

Net sales fell by 29 percent to P725.8 billion from P1.02 trillion.

Despite the reduced year-on-year earnings, San Miguel President and Chief Operating Officer Ramon Ang said the company was “encouraged by the sustained recoveries” of its businesses in the second semester.

“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,” Ang said.

“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,” he added.

For July to December, net profit reached P25.9 billion, reversing its P4-billion loss in the first six months and a 15-percent improvement from the year-earlier figure.

Net sales climbed by 6 percent semester-on-semester to P373 billion from P352.8 billion.
Food-and-drink subsidiary San Miguel Food and Beverage Inc. saw its income dive by 31 percent to P22.4 billion from P32.3 billion in 2019.

One of its units, San Miguel Brewery Inc., posted a P17.5-billion profit in 2020 on improved volumes. Ginebra San Miguel Inc. saw its earnings rise to P2.8 billion, also on higher volumes and a rebound in consumption, while San Miguel Foods’ consolidated revenues reached P135.2 billion, buoyed by its prepared and packaged food segment.

Power arm SMC Global Power Holdings Corp. reported year-on-year earnings growth of 31 percent to P18.9 billion. Oil subsidiary Petron Corp. closed 2020 with a P11.4-billion loss despite recovering in the third and fourth quarters.

SMC Infrastructure’s revenues fell by 38 percent to P14.6 billion in 2020 after state-imposed mobility restrictions cut traffic volumes at its toll roads.

San Miguel shares added P2 or 1.65 percent to finish at P123 apiece on Friday.