San Miguel Corp (SMC), one of the Philippines' most prominent conglomerates, reported a substantial 67% increase in net income for 2023, reaching PHP44.7 billion (£632 million), up from PHP26.8 billion (£379 million) the year before. The company credited its performance to robust volume growth across its core businesses and a sharpened focus on operational efficiency and sustainability.

The diversified corporation operates in key sectors including food and beverage, fuel, and infrastructure. Its consolidated operating income also climbed by 34% to PHP144.5 billion (£2 billion), highlighting improvements in profitability driven by strategic initiatives and improved performance across divisions.

Food and beverage units continue upward trajectory

Revenues from SMC’s food and beverage businesses totaled PHP379.8 billion (£5.4 billion), a 6% year-on-year increase. All divisions under this umbrella posted growth, underscoring the group's ability to navigate evolving market conditions while driving demand both locally and abroad.

The segment’s net income rose 10% to PHP38.1 billion (£539 million), reflecting both increased consumer spending and SMC’s efforts to streamline operations and reduce costs.

San Miguel Beer posts double-digit income rise

San Miguel Beer, the group’s flagship beverage brand, reported consolidated sales of PHP147.3 billion (£2 billion), marking an 8% increase from the previous year. This growth was driven by strong performance in both domestic and international markets, which saw volume increases of 8% and 7% respectively.

Despite this progress, SMC acknowledged that domestic beer sales volumes are still 25% below pre-pandemic levels. Nonetheless, the beer division’s net income rose 16% to PHP25.3 billion (£358 million), a result attributed to improved operational performance and higher interest income.

Resilience and long-term vision at the core of strategy

Commenting on the financial results, SMC president and CEO Ramon Ang described the company’s 2023 achievements as a reflection of its resilience and commitment to long-term national development. “Our robust performance again reflects our resilience and ability to deliver a strong bottom line despite macroeconomic uncertainties, and our commitment to continue investing in nation-building projects,” he said.

The earnings growth comes amid broader economic challenges, but San Miguel’s strategic investments in sustainability and operational upgrades have positioned it to maintain upward momentum. As one of the Philippines’ most influential corporations, its performance also signals encouraging trends across key sectors in the region.