Metro Manila (CNN Philippines, November 5) — San Miguel Corporation has recovered from initial losses early this year to a ₱15 billion net income for the third quarter, enjoying a boost from relaxed quarantine rules.
In a statement, the listed conglomerate said it has rebounded from the ₱4 billion loss it incurred from the first half of the year by netting a huge profit between July and September.
SMC realized a ₱10.7 billion net income in the first nine months. It reported a ₱39.7-billion profit during the same period last year, when revenues were at ₱759 billion.
Consolidated revenues reached ₱531.1 billion at end-September, still down by 30% from a year ago. Operating income was also slashed by 53% to ₱41.5 billion, the company said.
San Miguel Food and Beverage Inc. raked in the biggest sales, with total revenues reaching ₱194.6 billion. This is still 14% lower than last year’s levels, but was led by sales of beer and liquor and prepared and packaged food items. The unit ended with a ₱14.4-billion bottom line, down 37% year-on-year.
Ginebra San Miguel managed a 3% increase in year-to-date sales at 27.4 million cases of gin and other spirits under the brand. As a result, revenues rose by nearly a fifth to ₱25.3 billion and pushed a 67% jump in net income to ₱2.2 billion.
Liquor bans were also relaxed as the government eased quarantine rules months into the local coronavirus outbreak.
Meanwhile, beer production unit San Miguel Brewery Inc. saw revenues drop by 30% from September 2019, but recorded a more than double increase when compared from the second quarter.
SMC Global Power Holdings also added ₱14.5 billion to the group’s bottom line, up by a fourth from last year.
In contrast, fuel refinery and retail arm Petron Corporation incurred a
₱12.6 billion net loss for the first nine months as July-September operations failed to lift depressed results earlier this year.
“Domestic volumes have started to recover, with most Petron stations in the country operating under normal hours since August,” SMC said, but noted that hard lockdowns have eaten into profits.
SMC president and chief operating officer Ramon Ang earlier said he was considering to shut down local refinery operations amid issues on taxation, saying it is now cheaper to import fuel rather than mix them at Petron’s facility in Limay, Bataan.
The listed conglomerate’s infrastructure unit also suffered due to stay-at-home rules which kept vehicle traffic 37% lighter in its toll roads. Revenues are down by almost half to ₱10.3 billion.
“The country has proven its adaptability and resilience in these trying times, and we in San Miguel Corporation will continue to deliver on our commitment to help the country build back better and stronger as we emerge from this pandemic,” Ang said in a statement.
The tycoon earlier announced the completion of the Skyway Stage 3 project, but will allow motorists to use the elevated road for free in December.
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