San Miguel (SMC) Q2 2024 earnings summary

Executive summary

• Consolidated sales rose 15% year-over-year to P789,021 million, driven by higher volumes and prices in key segments.

• Net income declined 42% to P13,578 million, mainly due to a significant foreign exchange loss versus a gain last year.

• Operating income increased 22% to P85,089 million, reflecting improved margins in Energy and volume growth in Food and Petron.

• Net loss attributable to equity holders was P8,703 million, a reversal from last year's profit.

Financial highlights

• Gross profit grew 17% to P133,826 million, with cost of sales up 15% year-over-year.

• Interest expense rose 6% to P47,645 million; interest income increased 12% to P7,324 million.

• Other charges swung to a loss of P24,387 million from a gain of P6,220 million, mainly due to forex losses.

• Cash flows from operations remained strong at P74,608 million; net cash used in investing was P93,889 million.

Outlook and guidance

• Ongoing major projects include NAIA airport rehabilitation and expansion, with operations to commence in September 2024.

• Energy segment expects further BESS capacity additions and continued transition to fuel passthrough arrangements.

• Infrastructure and MRT 7 projects progressing, with key milestones achieved in Q2 2024.