EARNINGS

ANALYSIS
SAN MIGUEL CORPORATION

2022
SAN MIGUEL
CORPORATION
a diversified conglomerate based in the Philippines,
renowned for its extensive portfolio spanning food
and beverages, packaging, energy, infrastructure,
and telecommunications.

Ramon S. Ang is a well-known Filipino tycoon and serves as the Chief

Executive Officer (CEO) of San Miguel Corporation, a leading and highly
diversified conglomerate in the Philippines.

Ang has been a key figure in propelling the advancement and evolution of
San Miguel Corporation into a formidable presence in multiple sectors such
as food and beverage, energy, infrastructure, and telecommunications.
Renowned for his foresighted leadership, Ang has led the way in
implementing strategic measures that have not only broadened the

"
company's influence but have also made substantial contributions to the
economic progress of the nation.

GROUP 4 02
 Earning Analysis San Miguel Corporation

SMC 2022 revenues up MARKET OPEN

60% to P1.5 trillion, top AS OF 12/11/2023

pre-pandemic levels SMC ₱112.90

1.90 1.70%
San Miguel Corporation (SMC) concluded 2022
with robust combined revenues reaching ₱1.5
Market Cap ₱264,610,000,000
trillion, marking a 60% increase from the ₱941
billion recorded in 2021 and surpassing its pre- Outstanding ₱2,383,896,588
pandemic figure of ₱1.0 trillion in 2019. Shares

52 Week ₱92.75 - 116.40

The consolidated income from operations Range
experienced a 10% growth, totaling ₱134.5
billion. This increase was attributed to the Latest Dividend ₱0.35
Ex-Dividend Date Jan 4, 2024
sustained performance of key business units
such as Petron, San Miguel Food and Beverage, Dividend Yield 1.22%
San Miguel Packaging, and SMC Infrastructure.
Additionally, the company implemented YTD Change 23.29%
effective group-wide cost management
12 Month Change 20.63%
measures to counter the impact of rising raw
material costs, inflationary pressures, and
fluctuations in foreign exchange rates.

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Earnings Analysis San Miguel Corporation

Forecast Summary
Fiscal year is January - December

2019 2020 2021 2022

Revenue ₱1.02T ₱725.8B ₱941.19B ₱1.51T

Sales
0.43% -28.88% 29.68% 60.07%
Growth

Operating
₱112B ₱112B ₱72B ₱114B
Income

EBIT ₱115B ₱71B ₱117B ₱134B

EBITDA ₱158B ₱112B ₱161B ₱ 183B

EBITDA
2.01% -28.94% 42.88% 14.00%
GROWTH

San Miguel Corportion businesses

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Earnings Analysis San Miguel Corporation

SMC delivers strong consolidated

revenues reaching P1.1 trillion

San Miguel Food and Beverage INC.

During the nine-month period in 2022, San
Miguel Corporation (SMC) maintained its robust
sales momentum, registering consolidated San Miguel Food and Beverage, Inc. (SMFB)
revenues of ₱1.1 trillion, a notable 71% increase recorded consolidated revenues of ₱261.5
from the previous year's ₱650.6 billion, billion for the nine-month period, marking an
surpassing the pre-pandemic full-year 2019 18% rise compared to the corresponding period
revenues of ₱1.0 trillion. in the previous year. This growth was primarily
fueled by consistent robust volume expansion
The consolidated income from operations and improved selling prices within the Beer,
experienced a 24% growth, reaching ₱108.5 Spirits, and Food divisions. SMFB's consolidated
billion. This substantial increase was primarily operating income experienced a 15% increase,
propelled by the sustained strong performance of reaching ₱37.6 billion, while net income saw a
Petron, Food and Beverages, Packaging, and 9% move, totaling ₱26.3 billion when compared
Infrastructure, complemented by group-wide to the same period in 2021.
cost-saving initiatives. These measures effectively
mitigated the ongoing challenges posed by rising
raw material costs, heightened coal prices,
inflation, and forex fluctuations. San Miguel Brewery, Inc.

Ramon S. Ang, the President and Chief Executive

Officer of SMC, expressed optimism in the face of
a challenging business environment, citing the
San Miguel Brewery Inc. (SMB) reported
encouraging continuous growth in demand for
consolidated volumes of 164.2 million cases for
their products and services. He emphasized the
the nine months, marking an 11% increase
company's commitment to maintaining efforts
compared to the previous year. This growth was
and focusing on achieving full recovery.
primarily influenced by the positive effects of
increased mobility and the rapid reopening of
The consolidated core net income saw a
markets, both domestically and internationally.
significant trend, amounting to ₱43.5 billion,
The consolidated revenue reached ₱99.0 billion,
reflecting a 26% increase from the previous year's
reflecting a notable 21% surge from the same
₱34.4 billion. However, when factoring in the
period in the previous year.
impact of unrealized forex loss, the consolidated
SMB's consolidated Operating Income and Net
net income concluded at ₱12.9 billion.
Income concluded at ₱22.2 billion and ₱16.2
billion, respectively. These figures represent a
22% and 15% rise from the previous year,
showcasing the company's strong performance
during the specified period.
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Earnings Analysis San Miguel Corporation

PETRON CORPORATION

Petron Corporation maintained its robust SMC Global Power Holdings Corp. (SMC
performance during the initial nine months Global Power) experienced a 4% growth
of the year, achieving combined sales in offtake volumes during the nine-
volumes from Petron's operations in the month period, reaching 21,336 Gwh. This
Philippines and Malaysia, including its increase was primarily fueled by rising
Singapore trading subsidiary, totaling 80.4 demand from distribution utilities.
million barrels. This represents a substantial
37% increase compared to the The consolidated revenues amounted to
corresponding period last year. The ₱166.1 billion, marking a substantial 77%
Philippine volumes experienced a notable uptick from ₱93.9 billion in the previous
40% surge, attributed to the recovery in year. This growth was supported by the
industrial demand and the aviation sector. expansion in offtake volumes and the
rise in average bilateral rates.
Petron's consolidated revenues reached
₱631.1 billion, significantly surpassing the However, the company faced challenges,
previous year's ₱291.6 billion by 116%, notably unprecedented spikes in coal
highlighting a remarkable financial growth. prices, which surged almost eight times,
starting from P3,340/Mt (US$65MT
The company's operating income remained @P51.30) at the contract execution date
resilient at ₱16.5 billion, marking a 23% and reaching P25,430/MT ($434/MT
increase from the ₱13.4 billion recorded in @P58.59) by the end of September 2022.
2021. Moreover, the consolidated net Additionally, significant derations in the
income amounted to ₱8.2 billion, capacity of the Ilijan Plant contributed to
demonstrating a substantial 64% rise from incremental supply costs of
last year's ₱4.99 billion. approximately P18 billion for the period
January to September 2022, covering the
contracted 1000MW capacity with
Meralco alone.

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Earnings Analysis San Miguel Corporation

San Miguel
2019 2020 2021 2022
Corporation
REVENUE BREAKDOWN
₱725.8
Revenues ₱1,020T ₱941.19 ₱1.51T
B
B

% Growth 0.43% -28.88 29.68% 60.07%

%

EBIT ₱115B ₱71B ₱117B ₱134B

EBITDA ₱158B ₱112B ₱161B ₱ 183B

Operating
Profit

Interest
Expense

Operating
Profit

Interest
Expense

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Earnings Analysis San Miguel Corporation

Income Statement
Fiscal year is January - December

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Earnings Analysis San Miguel Corporation

2019 2020 2021 2022

Revenues

% Growth

EBIT

EBITDA

Operating Profit

San Miguel Corporation makes

money from different
businesses. About 34 percent
comes from making power
through San Miguel Global
Power, showing its dominance
in the energy sector. Another 16
percent is from the petroleum
business, mainly Petron. The
brewery part, led by San Miguel
Brewery, is 37 percent, focusing
on drinks. Ginebra San Miguel, in
spirits, adds 1 percent. Packaging
is 4 percent. The food part, with
San Miguel Foods, is 8 percent,
emphasizing their diverse food
products. This mix of businesses
makes San Miguel a strong
G Rcompany
OUP 4 in the Philippines. 08