San Miguel Corp. on Thursday reported net income in 2023 rising 67 percent to P44.69 billion from previous year’s P26.76 billion, notwithstanding a revenue decline owing to the tight prices in the oil market that impacted Petron Corp. and the performance of its power unit.
Consolidated revenue slipped 4 percent to P1.44 trillion from the previous year’s P1.5 trillion traced to the double-digit decline of its power unit.
“We had a strong finish to 2023, which was marked by a healthy operating income and EBITDA (earnings, before interest, depreciation and amortization), thanks to our continuous effort to maximize operational efficiencies aligned with our sustainability agenda,” San Miguel president Ramon S. Ang said.
He is optimistic of the country’s near term prospects given its robust macroeconomic fundamentals and its corporate strategy.
According to the company, its food and beverage business is seen to track a growth path aided by positive consumer demand, favorable inflationary environment, and strong brand following.
“The infrastructure business, on the other hand, is seen to sustain its growth trajectory with continued traffic growth across its network, along with increased travel throughout the country,” it said.
“Meanwhile, with its increased capacity, the cement business is expected to benefit from both private and public sectors’ push for economic and infrastructure development,” the company said.
San Miguel Food and Beverage Inc. reported revenue totaling P379.8 billion or 6 percent more than previous, with all business units reporting sales growth on account of improved volume and pricing strategies.
Its net income jumped 10 percent to P38.1 billion from previous year’s P34.66 billion.
San Miguel Global Power reported a 23 percent decline in revenue to only P169.59 billion from last year’s P221.38 billion as a result of lower contracted volume and price due to reduced fuel tariffs. Newcastle coal indices averaged $172.79 per metric ton in 2023, compared to $360.19 per MT in 2022.
Its operating income was up 13 percent to P32.5 billion due to lower operating cost and exposure to better spot prices.
Net income rose threefold to P9.9 billion from P3.13 billion.
Petron Corp. revenue settled at P801.02 billion, slipping 7 percent from previous year’s P857.6 billion as prices continued to correct from record-high levels in 2022. The full-year average price of benchmark Dubai crude stood at $82 per barrel in 2023, down 15 percent from $96 in 2022.
Net income rose 51 percent to P10.13 billion from only P6.69 billion.
SMC’s infrastructure unit ported consolidated revenue of P34 billion, 17 percent higher than prior year of account of sustained growth across all operating toll roads.
Combined average daily traffic volume reached 1million vehicles, an 8 percent increase from 2022 level, buoyed by continued increase in travel activities.
Its net income increased 33 percent from prior year to P11.4 billion.
The cement business, comprised of Eagle Cement Corp., Northern Cement Corporation, and Southern Concrete Industries Inc., reported a four-fold increase in consolidated revenue to P37.2 billion in 2023 and attributed to the consolidation of Eagle Cement last year and the start of commercial operations of its new facility in Davao del Sur.
The cement business posted net income of P5.98 billion, a turnaround from prior year’s loss of P599 million.
