San Miguel Corporation's 2023 Net Income Soars 67% to PHP 44.7 Billion

San Miguel Corporation (SMC) announced substantial full-year earnings for 2023, showcasing a 67% increase in consolidated net income to P44.7 billion.​

Significant volume expansion across its main businesses—San Miguel Brewery, Inc., Ginebra San Miguel, Inc., Petron, and SMC Infrastructure—as well as the incorporation of Eagle Cement Corporation's financial results were the driving forces behind this.

A 34% increase in consolidated operating income to P144.5 billion and a 24% increase in EBITDA to P205.3 billion were made possible by SMC's strategic focus on operational savings and sustainability measures.

"We had a strong finish to 2023, which was marked by a healthy operating income and EBITDA, thanks to our continuous efforts to maximize operational efficiencies, aligned with our sustainability agenda. Our robust performance again reflects our resilience and ability to deliver a strong bottom line despite macroeconomic uncertainties, and our commitment to continue investing on nation-building projects," SMC President and CEO Ramon S. Ang, said.

​For the year, San Miguel Food and Beverage Inc. (SMFB) produced exceptional financial results. SMFB reported P379.8 billion in revenue, 6% more than the year before. All business units reported higher sales as a result of higher volumes and more competitive pricing.

As GSMI recorded record-high volumes in 2023, its sales reached P53.6 billion, up 13% from the previous year. The motivation behind this was to increase brand equity by broadening the market, promoting it to consumers, and running continuous advertisements. This resulted in an increase in operating income of 14% to P6.8 billion. Significant gains of 41% and 55% were observed in net income and EBITDA, totaling P7.0 billion and P9.4 billion, respectively.
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​Due to lower contractual volumes and prices as a result of decreased fuel taxes, San Miguel Global Power reported a 23% decline in revenues to P169.6 billion. In 2023, the average Newcastle coal index was US$172.79/MT, down from US$360.19/MT in 2022.

Through persistent efforts to support demand recovery, maximize resources and assets, and manage market volatility, Petron was able to increase operating income by 60%, from P19.2 billion in 2022 to P30.7 billion in 2023. The P10.1 billion in net income was 51% more than the P6.7 billion recorded the year before.

Consolidated revenues for SMC Infrastructure came to P34.0 billion, a 17% increase over the prior year. Consistent expansion on all active toll roads was the cause of this. Thanks to a steady rise in travel-related activities, the combined average daily traffic volume reached 1.0 million vehicles, an 8% increase from the level in 2022.

Eagle Cement Corporation's full-year consolidation in 2023 and the commencement of commercial operations at its new facility in Davao del Sur were the primary causes of the cement industry's four-fold growth in consolidated revenues to P37.2 billion. The cement industry is made up of Eagle Cement Corporation, Northern Cement Corporation, and Southern Concrete Industries, Inc.
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Despite ongoing market uncertainty, SMC is confident in its ability to effectively manage its business and keep creating sustainable value. The company maintains optimism over the country's capacity to maintain growth momentum until 2024 due to its strong macroeconomic fundamentals and well-anchored sustainability agenda and strategy.

With support from a strong brand base, a favorable inflationary environment, and a supportive consumer demand backdrop, SMC's food and beverage sector is expected to maintain its current growth trajectory.
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On the other hand, it is anticipated that the infrastructure industry will continue to grow due to rising national travel and traffic growth across its network.
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Meanwhile, the push for economic and infrastructure development from the public and private sectors is anticipated to boost the cement industry with its expanded capacity.