Business

SMC suffers P4B loss in first half due to COVID-19

Conglomerate San Miguel Corp. swung to a P4 billion loss in the first half as the coronavirus outbreak which has resulted in lockdowns weighed heavily on its businesses.

In January to June last year, SMC reported net earnings of P26.2 billion.

Consolidated revenues fell by 31% to P352.8 billion while consolidated operating income dived 74% to P14.9 billion, largely due to weak output from units Petron Corp. and San Miguel Brewery Inc.

The liquor ban imposed due to the hard lockdown in mid-March to May pulled down sales of SMB, which was already reeling from the effects of higher excise taxes.

Petron, meanwhile, continued to face headwinds amid volatile global crude prices and soft demand. It suffered
inventory losses of nearly P15 billion.

SMC president Ramon S. Ang, however, expects his businesses to bounce back in the second half with sales picking up pace with the reopening of the economy in June.

Ang said the company is determined to build on these gains.

“The best thing we can do is to work hard to continue providing essential goods and services to our people, while adjusting our operations to fully adhere to the quarantine,” he said.

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