Weaker peso drags SMC Q1 income  

SAN MIGUEL Corp. (SMC) saw its attributable net income for the first quarter (Q1) fall 94% to P509 million from P8.83 billion in the same period last year due to foreign exchange loss, the listed conglomerate said.

For the first quarter, gross revenues increased to P392.71 billion, 13.3% higher than the P346.73 billion in the same period last year.

“The net income attributable to equity holders of the parent company decreased mainly due to lower net income on account of the foreign exchange loss as compared to foreign exchange gain in the same period in 2023,” SMC said in a regulatory filing on Thursday.

The company’s consolidated net income declined by 50% to P8.89 billion from the P17.74 billion in the first quarter of 2023, which SMC also attributed to the loss on foreign exchange in the first quarter of 2024.

The peso closed at P57.47 against the dollar on Thursday, strengthening by four centavos from its P57.51 finish on Wednesday. Its finish on Monday was its lowest in 18 months or since the P58.19-per-dollar close on Nov. 10, 2022.

Cost of sales for the first quarter increased to P328.36 billion, 13.2% higher than the P290.18 billion a year ago.

“The Group’s cost of sales increased by P38,181 million or 13%, mainly due to: higher volume sold reduced by the lower cost per liter of petroleum products of Petron; and higher LNG (liquefied natural gas) and coal consumption resulting from the resumption of operations of the Ilijan Power Plant in June 2023,” SMC said.

SMC’s gross expense for the first quarter expanded to P352.25 billion from P311.67 billion in the comparable year-ago period.

San Miguel Food and Beverage, Inc. managed to sustain steady performance for the first quarter after posting a P13.12 billion consolidated income from operations, SMC said.

Its packaging business posted an operating income of P696 million, 13% lower compared with the same period previously.

Further, the company’s energy arm — San Miguel Global Power — ended the first quarter with P1.55 billion, lower than its previous earnings, SMC said.

The company’s fuel and oil business reached P10.17 billion in consolidated operating income for the first quarter, up by 21% compared with the same period a year ago.

SMC’s infrastructure unit posted P3.59 billion net income driven by its higher interest income; while consolidated revenues hit P8.88 billion, 9% higher than last year’s, driven by the performance of its major operating toll roads.

SMC’s cement business recorded a net income of P1.2 billion for the first quarter, nearly doubling the P631 million earnings in the same period last year.

At the local bourse on Thursday, shares in SMC shed 20 centavos or 0.19% to end at P103.70 apiece. — Ashley Erika O. Jose