Conglomerate San Miguel Corp. (SMC) said it incurred a net loss of P4 billion in the first half, a reversal of the P26.15-billion net income it posted last year, as lockdown restrictions paralyzed the operations of its subsidiaries.
Revenues declined 31 percent to P352.8 billion, from last year’s P509.49 billion, while consolidated operating income plunged 74 percent to P14.9 billion, from the previous P57.61 billion.
“The first half was particularly challenging for most in the business sector but we are seeing strong indications of a recovery for SMC businesses, and we remain focused and determined to build on these gains,” San Miguel President and COO Ramon S. Ang said.
“Government reopening the economy, and allowing businesses to operate under strict health and safety protocols was a very good call. Given that we’re still in a pandemic, saving lives is still our priority. As such, we fully support the new modified enhanced community quarantine in support of our medical frontliners.”
The pandemic shut almost all economic activity in the country from mid-March to mid-May, and two of its subsidiaries were particularly hit the hardest—San Miguel Brewery Inc. and Petron Corp. Both companies suffered steep decline in revenues, with the refiner reporting a P14.23-billion loss for the period from the previous income of P2.62 billion, while the brewer’s income was cut by 61 percent to P5.02 billion, from last year’s P13.25 billion.
Petron continues to improve its productivity and reduce expenses to cope with the Covid-19 impact. Cash preservation initiatives have also been initiated. With crude prices stabilizing on the back of improving demand, some recovery in refining margins are expected moving forward, the company said.
Its other businesses such as food, liquor, power generation and infrastructure all generated income, but were all offset by Petron’s losses.
“The best thing we can do is to work hard to continue providing essential goods and services to our people, while adjusting our operations to fully adhere to the quarantine,” Ang said.
“We are fortunate that during the easing of the quarantine, we were able to put in place and strengthen strategies that will help us operate better, get our products and services to more customers, support long-term growth, and help boost our economy during these challenging times.”
One of the measures the company implemented is the opening of its own Covid-19 PCR testing lab, designed to test and safely get some 70,000 employees, consultants, service providers, and partners back to work. It has a capacity of 4,000 tests per day.
The company also recently launched its online ordering platform (www.themall.sanmiguel.com.ph) that houses all its major consumer product segments.
“Our commitment is to continue doing our part to help our country any way we can, including providing aid, pushing through with major investments to boost and strengthen our economy,” Ang said.