Metro Manila (CNN Philippines, March 12) — San Miguel Corporation reported a ₱48.6 billion net income for 2019, steady from last year’s level as strong gains from its beer and food segments offset losses in its fuel business.
The diversified conglomerate reported profits similar to what it made in 2018, while total sales also stood unchanged at ₱1.02 trillion.
San Miguel Food and Beverage, Inc. accounted for bulk of profits at ₱32.3 billion, up by 6 percent from the previous year boosted by strong beer and liquor sales, as well as gains from processed food products.
Meanwhile, SMC Global Power Holdings Corp. added ₱14.4 billion, a 73 percent jump from 2018 profits as longer operating hours of the Sual and Ilijan power plants pushed power generation volumes by nearly a fifth. Full operations in the company’s unit 2 plant in Malita, Davao and units 3 and 4 in Limay, Bataan added to total output, the company said.
However, its fuel refinery arm Petron suffered a big drop in its bottom line last year to ₱2.3 billion, just a third of what the company made in 2018. The listed firm said volatile international crude prices, the shutdown of its Bataan refinery plant, additional excise taxes for fuel products, and competing “white stations” – or those reportedly selling smuggled oil for cheaper rates – stood as the biggest challenges for the business.
Shares at SMC slid by 7.95 percent to ₱9.50 apiece on Thursday, suffering from a market-wide plunge as the novel coronavirus was declared a pandemic by the World Health Organization.
RELATED: Higher fuel excise taxes take effect January 1
