San Miguel 2022 profit comes from foreign exchange losses
Conglomerate San Miguel Corp. (SMC) said its revenue fell 44% last year to 26.76 billion pesos from 48.15 billion pesos the previous year due to the impact of unrealized losses on the revaluation of its long-term foreign currency debt.
Revenues rose 60 percent to 1.5 trillion pesos, up from 941.19 billion pesos the previous year, and even surpassed their 2019 pre-pandemic result of 1 trillion pesos.
Consolidated operating income rose 10 percent to 134.5 billion pesos from 121.89 billion pesos in the prior year, driven by the solid performance of key businesses such as Petron Corp., San Miguel Food and Beverage Inc., San Miguel Packaging and SMC Infrastructure, as well as a group-wide cost management effort to mitigate the effects of rising raw material costs, inflationary pressures and currency fluctuations.
“Our strong top performance is a clear indication of our continued economic recovery as well as strong consumer demand for our products and services,” said San Miguel President and CEO Ramon S. Ang.
“While challenges remain, we are confident in the measures and programs we have put in place to deal with them. We remain firmly committed to implementing the long-term growth strategy we have developed for our company, which will also bring significant benefits to our country.”
San Miguel Global Power Holdings Corp. (SMCGP) recorded consolidated revenue of 221.4 billion pesos in 2022, up 66 percent from 133.7 billion pesos in the previous year, driven by higher average realized prices, higher spot selling prices and improved nominations. by power.
Sales volumes reached 27,402 gigawatt hours (GWh), up 181 GWh from the previous year.
Operating profit, however, declined 22% to 28.9 billion pesos from 36.8 billion pesos recorded in 2021, reflecting the impact of rising fuel prices, the impact of high prices on the wholesale spot electricity market and the reduction in capacity of the Ilijan power plant.
By the end of December 2022, coal prices reached $404.07 per metric ton
SMCGP’s net profit was 3.13 billion pesos, down 80 percent from the previous year’s 15.97 billion pesos.
Meanwhile, Petron’s recovery continued throughout the year as combined sales in the Philippines and Malaysia totaled 112.8 million barrels, up 37% from 2021. Domestic sales rose by 43% as demand from the industrial and aviation sectors recovered.
The company’s consolidated net income was 6.7 billion pesos, up 9 percent from the 6.1 billion pesos it reported in 2021.
Meanwhile, SMC Infrastructure’s consolidated revenue was 29 billion pesos, up 47 percent from 2021 levels. The intensity of traffic on all existing toll roads increased by 25 percent, maintaining an upward trend.
Operating income more than doubled to 14.2 billion pesos from the previous 6.78 billion pesos due to increased traffic.