Conglomerate San Miguel Corp. (SMC) on Thursday said it booked a net income of P21.88 billion for the entire 2020, down by more than half from the previous year’s P48.57 billion, as revenues plummeted to below P1 trillion.
SMC’s annual sales fell drastically mainly due to the economic fallout from the Covid-19 pandemic. The company said its revenue fell 29 percent to P725.79 billion from the previous P1.02 trillion.
San Miguel reversed the P3.98-billion loss it booked in the first half of the year by earning P25.86 billion during the second half. Its sales, however, failed to follow, growing only 6 percent during July to December at P373 billion, from P352.79 billion in the first half of the year, when most of the strictest lockdown measures occurred. “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,” company president and COO Ramon S. Ang said.
“We will continue to stay focused on gaining performance improvements in this new normal while pursuing initiatives that generate jobs and deliver tangible assets to fuel our economy’s growth.”
San Miguel Food and Beverage Inc.’s net income fell 31 percent to P22.4 billion from the previous P32.27 billion.
Consolidated revenues of P279.3 billion for the full year was 10 percent lower than the P310.78 billion recorded in 2019.
Petron Corp. incurred an P11.41-billion loss for the entire year from the previous P2.3-billion income. While it recorded an income of P2.82 billion in the second half, this was not enough to offset the P14.54-billion loss the company incurred in the first half of 2020.
SMC Global Power Holdings Corp. posted a 31-percent growth in income to P18.87 billion, from the previous P14.36 billion. It posted full-year off-take volumes of 26,116 gigawatt hour, translating to P115.02 billion in consolidated revenues, 15 percent lower than the previous P135.06 billion.
This was mainly due to the deferment of the mid-merit power supply agreement with Manila Electric Co., the extended contract with Masinloc, and low average realization rate from new power contracts.
Lower fuel costs and spot purchases, together with effective power dispatch strategies, improved Global Power’s performance in the second half.
SMC Infrastructure’s income fell 78 percent to P2.57 billion from the previous P11.44 billion.
Revenues for the year fell 38 percent to P14.56 billion from the previous P23.4 billion, brought about by the decline in traffic volumes at all operating toll roads due to travel and quarantine restrictions. Volume improvements continued throughout the second half of 2020, with combined average daily vehicle traffic in the fourth quarter reaching 80 percent of 2019 levels, with notable recoveries seen at South Luzon Expressway and Star Tollway (Southern Tagalong Arterial Road).
On January 14, SMC Infrastructure opened Skyway Stage 3 to the public, cutting travel time from SLEX in Alabang to North Luzon Expressway in Balintawak with a speed limit of 60 kilometer per hour to between 25 to 30 minutes.
Meanwhile, the board of San Miguel on Tuesday approved the submission of the company’s shelf registration of P50 billion worth of bonds with the Securities and Exchange Commission. The company said it plans to float P30 billion of these bonds immediately.
Read full article on BusinessMirror
