SMC income plunges 91% to P1 billion in Q1

MANILA, Philippines — San Miguel Corp., the country’s biggest conglomerate, saw its first quarter income slump 91 percent to P1 billion due to the adverse business environment brought about by the coronavirus disease 2019 or COVID-19 global pandemic.

COVID-19 grounded most economic activities to a halt, the company said in a presentation to investors.

As a result, SMC’s net sales dropped 15 percent to P214 billion.

“This is an unprecedented crisis we are in, and many countries all over the world continue to struggle to cope. Like most big and small businesses in the Philippines, we are also affected but we maintained our focus on cost reduction and cash preservation amid the COVID-19 crisis,” said SMC president Ramon Ang.  
The enhanced community quarantine resulted in a total liquor ban, suspended public transportation and restricted vehicle movements, he said.

Despite the challenging environment, Ang said SMC’s priority is to ensure the continuous and efficient delivery of SMC products and services, strengthen and expand new programs initiated during this crisis, implement plans to safely bring the workforce back, and continue to help the country manage the impact of the pandemic.

“Our economy and day-to-day lives depends on how well we can all work together as one nation to fight COVID-19,” Ang said.

San Miguel Food and Beverage Inc.’s net income dropped 21 percent to P5.8 billion as consolidated revenues fell nine percent to P69 billion.

The San Miguel packaging group’s results also reflected the effects of the enhanced community quarantine with operating income down 31 percent to P570 million.

SMC Global Power Holdings Corp. also posted a 10 percent drop in net income to P3.2 billion.

Petron Corp., the country’s biggest oil refiner, was severely affected by the challenging business environment with transportation and mobility severely restricted throughout the quarantine period.

As a result, Petron incurred a net loss of P4.9 billion compared to the net income of P1.3 billion the previous year.

SMC Infrastructure’s operating toll roads registered a 15 percent volume decline as the lockdown restricted travel movements throughout Luzon. Thus, consolidated revenue fell 27 percent to P4.7 billion, while operating income decreased by 43 percent to P1.8 billion.