MANILA — San Miguel Corporation (SMC) reported robust results for the first half of 2024, with consolidated revenues reaching ₱789.0 billion, a 15% increase from the same period last year.
This growth was fueled by strong performance across most business segments, including Petron Corporation, San Miguel Global Power, San Miguel Infrastructure, San Miguel Foods, and Ginebra San Miguel Inc.
Operating income expanded by 22% to ₱85.1 billion, supported by improved margins in the Power business and reduced raw material costs in the Food business.
Net income, excluding unrealized foreign exchange effects, surged by 66% to ₱33.5 billion, reflecting the company’s financial health and strong profit generation.
“Our strong first semester performance demonstrates the resilience of our businesses even in a challenging market. We expect this positive momentum to continue throughout the year and deliver sustained value to all our stakeholders,” said SMC Chairman and CEO Ramon S. Ang.
FOOD AND BEVERAGE
San Miguel Food and Beverage, Inc. (SMFB) reported solid results for the first half of 2024, driven by continued business growth. Consolidated sales for the period ending June 30, 2024, increased by 4% to ₱192.9 billion. Operating income grew by 16% to ₱26.6 billion, while net income rose 6% to ₱20 billion. EBITDA increased by 5% to ₱33.9 billion.
San Miguel Brewery Inc. saw its consolidated revenues rise by 1% to ₱75.1 billion, driven by improved sales volume in the second quarter. EBITDA reached ₱19.2 billion, and operating income amounted to ₱15.9 billion. The company anticipates stronger performance in the second half of 2024, supported by targeted sales initiatives and increased focus on specific channels.
Ginebra San Miguel Inc. reported an 18% sales increase to ₱30 billion, driven by 10% volume growth, effective marketing campaigns, new products, and expanded distribution. Despite rising costs, operating income rose by 31% to ₱4.4 billion, demonstrating strong brand performance and supply chain efficiency.
San Miguel Foods saw a 3% increase in sales to ₱87.8 billion, driven by double-digit revenue growth in Prepared and Packaged Foods, along with resilient Poultry sales. Key products such as Tender Juicy Hotdogs, Purefoods Luncheon Meat, Magnolia dairy, and San Mig Coffee maintained strong sales. Higher volumes, improved pricing, and lower raw material costs contributed to a 41% increase in EBITDA to ₱10 billion, while operating income doubled to ₱6.4 billion.
POWER
San Miguel Global Power Holdings Corp. (SMGP) continued its growth in the second quarter, bringing the group’s first-half revenues to ₱98.9 billion, up 17%, despite a lower average realization price due to an overall decline in fuel prices.
Operating income rose by 56% to almost ₱23.0 billion, while EBITDA jumped by 45% to ₱30.1 billion, reflecting improved margins from contracted volumes and the contribution of higher-margin ancillary services from BESS.
FUEL AND OIL
Petron Corporation delivered a 21% growth in consolidated revenues for the first half of the year, reaching ₱444.5 billion, up from ₱367.0 billion last year, sustaining its positive momentum.
The company continued to register strong volumes in the Philippines and Malaysia, with sales reaching 69.1 million barrels in the first six months, up 20% from 57.6 million barrels sold in the same period last year. This growth was driven by sustained performance in key segments, particularly retail and exports.
Despite a 17% decline in refining cracks from last year’s level, overall margins improved with solid volume growth. Consolidated operating income rose by 8% to ₱17.3 billion, while net income ended at ₱6.0 billion.
INFRASTRUCTURE
San Miguel Infrastructure maintained its growth trajectory, with a 9% increase in revenues to ₱18.1 billion for the first six months of 2024. This was driven by a 4% growth in combined tollway daily average volumes, which ended at 1.034 million vehicles.
Operating income increased by 8% to ₱9.7 billion, while EBITDA expanded by 9% to ₱14.7 billion, maintaining a healthy margin of 81%.
CEMENT
SMC’s Cement Business — comprised of Eagle Cement Corporation, Northern Cement Corporation, and Southern Concrete Industries, Inc. — recorded consolidated revenues of ₱19.0 billion in the first half of the year, a 6% decline compared to the same period last year. Lower average selling prices, in response to an influx of imported traded cement, weighed on its topline. However, stronger second-quarter sales volume partially mitigated the decline.
The business grew its operating income by 31% to nearly ₱4.0 billion, thanks to cost reductions and operational efficiencies. EBITDA rose by 18% to ₱5.4 billion.
