San Miguel Corp’s 1Q profit plunges by 20%

San_Miguel

MANILA – SAN Miguel Corp., the country’s largest conglomerate, reported a 20% drop in consolidated net income to ₱5.8 billion in the first quarter of the year while operating income also declined by 20 percent to ₱8.6 billion.

In a statement released by the company, it registered consolidated revenues of ₱69.0 billion in 1Q of 2020, a 9% dip the same period last year due to the impact brought upon by Covid-19.It’s Beer and spirits divisions despite starting the year on a good momentum, also suffered a hit when the Enhanced Community Quarantine (ECQ) was declared on several areas, liquor bans across the cities impacted the sales of its alcoholic beverages.

Net sales fell 15% from P250.92 billion to P214.06 billion as beer and oil were affected.
The Food Division on the other hand, consolidated revenues of ₱33.2 billion on Q1, 2% higher than the previous year as consumers stocked up on supplies during the ECQ period.

San Miguel however reiterated that the company has a solid financial foundation to weather the current crisis and will take appropriate steps to managing its expenses and capital expenditures moving forward. SMFB President and CEO Ramon S. Ang reassures the public on San Miguel’s commitment to ensure the supplies for every Filipino in this time of crisis.

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