San Miguel 2022 profit falls on foreign exchange losses

Conglomerate San Miguel Corp. (SMC) said its income last year fell 44 percent to P26.76 billion from the previous year’s P48.15 billion due to the impact of unrealized losses on the revaluation of its foreign currency-denominated long-term debt.

Revenues rose 60 percent to P1.5 trillion from the previous year’s P941.19 billion, and even surpassed its 2019 pre-pandemic result of P1 trillion.

Consolidated income from operations rose 10 percent to P134.5 billion from the previous year’s P121.89 billion, driven by the sustained performance of key businesses such as Petron Corp., San Miguel Food and Beverage Inc., San Miguel Packaging and SMC Infrastructure, as well as group-wide cost management efforts to mitigate the effects of increasing raw material costs, inflation pressures, and forex movements.

“Our strong top line performance is a clear indication of our economy’s continuous recovery as well as the strong consumer demand for our products and services,” San Miguel President and CEO Ramon S. Ang said.

“While challenges remain, we’re confident in the measures and programs we’ve put in place to weather these. We remain strongly committed to executing on the long-term growth strategy we’ve laid out for our company, that will also significantly benefit our country.”

San Miguel Global Power Holdings Corp. (SMCGP) recorded consolidated revenues of P221.4 billion in 2022, up by 66 percent from P133.7 billion in the previous year, brought about by an increase in average realization prices, higher spot sales prices, and improved power nominations.

Offtake volumes reached 27,402 gigawatt hour (Gwh), higher by 181 Gwh from the previous year.

Operating income, however, declined by 22 percent to P28.9 billion from P36.8 billion registered in 2021, reflecting the impact of increases in fuel costs, exposure to high Wholesale Electricity Spot Market prices and the deration of the Ilijan power plant.

By the end of December 2022, coal prices reached $404.07 per metric ton (MT), coming from $170.23 per MT at the end of 2021.

SMCGP’s net income amounted to P3.13 billion, down 80 percent from the previous year’s P15.97 billion.

Petron’s recovery, meanwhile, continued throughout the year, as it posted combined sales volumes from its Philippines and Malaysia operations of 112.8 million barrels, up 37 percent compared to 2021.  Domestic volumes climbed 43 percent, as demand from the industrial and aviation sectors recovered.

It had a consolidated net income of P6.7 billion, 9 percent better than the P6.1 billion it reported in 2021.

Meanwhile, SMC Infrastructure delivered consolidated revenues of P29 billion, 47 percent higher than 2021 level. Traffic volume at all operating toll roads increased 25 percent, sustaining its upward trend.

Operating income grew more than double to P14.2 billion from the previous P6.78 billion owing to higher traffic volume.


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