San Miguel (SMC) Q4 2024 earnings summary

Executive summary

• Consolidated sales for the nine months ended September 30, 2024 rose 11% year-over-year to ₱1,179,521 million, driven by volume growth in Petron, Energy, and Food and Beverage, and higher average selling prices in key beverage units.

• Net income increased 19% to ₱37,094 million, with improved operations in Food, Energy, Infrastructure, and Cement, and lower foreign exchange losses compared to the prior year.

• The Group completed the takeover and began operations of NAIA under a 25-year concession, and executed major investments in LNG and power generation, including the acquisition of the Sual Power Plant.

Financial highlights

• Gross profit for the period was ₱195,718 million, up 11% from ₱176,889 million year-over-year, with gross margin at 16%.

• Operating income rose 11% to ₱121,854 million, reflecting improved margins in Energy and higher Food and Beverage sales.

• Interest expense and other financing charges increased 10% to ₱72,693 million due to higher rates and borrowings.

• Net income attributable to equity holders of the parent was ₱4,978 million, a significant increase from ₱146 million in the prior year.

Outlook and guidance

• The Group expects continued growth from infrastructure, energy, and food and beverage, with ongoing cost management and efficiency initiatives.

• Ongoing projects such as the MIA airport and MRT 7 are progressing, with further investments in energy and water expected to support long-term growth.