San Miguel Corp. on Thursday reported a net loss of P4 billion in the first half of 2020 as the imposition of community quarantines and restrictions on alcohol consumption and travel cut subsidiaries’ sales.
As a result of the lockdowns, San Miguel’s consolidated revenues fell 31 percent to P352.8 billion year on year, while consolidated operating income plunged by 74 percent at P14.9 billion.
In a statement, San Miguel said San Miguel Brewery (SMB) Inc. and Petron Corp. were the hardest hit by the pandemic.
SMB’s consolidated revenues dropped by 39 percent to P42.8 billion. Operating income slumped by 61 percent to P7.4 billion.
Volatile global crude prices and weak oil consumption forced Petron to initiate “cash preservation initiatives.”
Petron recorded a consolidated net loss of P14.2 billion in the first half of 2020, a reversal of its P2.6-billion net income in 2019.
The oil refining company’s consolidated revenues suffered a 40-percent cut from last year’s P254.8 billion, to P152.4 billion in the first half of this year.
Consolidated sales volumes from Petron’s Philippine and Malaysian operations fell by 19 percent to 41.9 million barrels in the first semester of 2020 from 51.9 million barrels last year.
“The first half was particularly challenging for most in the business sector but we are seeing strong indications of a recovery for [San Miguel] businesses, and we remain focused and determined to build on these gains,” San Miguel President Ramon Ang said in a statement.
San Miguel had announced that all its major infrastructure projects would push through to boost the economy and provide employment amid the Covid-19 pandemic.
“We are fortunate that during the easing of the quarantine, we were able to put in place and strengthen strategies that will help us operate better, get our products and services to more customers, support long-term growth and help boost our economy during these challenging times,” Ang said. John Ezekiel J. Hirro