SAN MIGUEL Corp. (SMC) announced on Thursday a 3% rise in consolidated recurring net income to P13.9 billion as revenues surged on the back of strong volume growth and better selling prices across its businesses.

“Overall, we are off to a good start this year, with volumes and revenues showing robust growth,” SMC President and Chief Executive Officer Ramon S. Ang said in a statement.

First-quarter consolidated revenues climbed 57% to P316.8 billion while consolidated income from operations jumped 25% to P40.1 billion.

“While we are still seeing mixed results from our businesses due to the Omicron surge disruption at the start of the year and significant increases in raw material prices, we are well-positioned to build on our gains,” Mr. Ang said.

“Economic activity is returning to pre-pandemic levels, our work force has been fully vaccinated, and we have managed to keep the virus under control. With these, we are confident we can sustain our target levels of growth,” he added.

Of the conglomerate’s business units, San Miguel Food and Beverage, Inc. (SMFB) earlier reported a 1% rise in net income to P9.2 billion.

Consolidated revenues were up 9% to P83.1 billion, driven by volume growth and better selling prices across multiple categories in its beer, spirits, and food divisions. Consolidated operating income was slightly higher at P12.7 billion after rising input costs on raw materials and utilities.

Meanwhile, San Miguel Brewery, Inc. recorded consolidated revenues of P29.7 billion, up 3% from last year’s P28.8 billion, mainly due to growth in its international operations.

Operating income stood at P6.8 billion, at par with the previous year’s level and despite the increase in beer taxes implemented at the start of the year.

Ginebra San Miguel, Inc.’s net income grew 34% to P1.4 billion, while revenues were up by 11% to P12.6 billion a year ago. Operating income rose 39% to P1.8 billion, driven by higher volumes, continuing cost management and innovative brand-building initiatives.

SMFB division San Miguel Foods recorded a 13% growth in first-quarter revenues to P40.8 billion, supported by higher volumes and enhanced sales mix that focused on higher value-added products.

“Significant increases in the prices of major raw material, along with supply chain challenges and skyrocketing fuel prices, squeezed margins, resulting in an 8% decline in operating income to P4.2 billion,” SMC said.

In response, it said the food business “maximized the use of alternative raw materials, implemented purposive fixed costs cuts, and optimized utilization of company-owned production facilities as well as capitalized on synergies in logistics and distribution.”

Its power arm, SMC Global Power Holdings Corp., reported a 57% rise in consolidated revenues to P43 billion, brought about by higher average realization prices for bilateral contracts with fuel pass-on charges and higher prices at spot sales.

Petron Corp. earlier said its net income more than doubled to P3.6 billion, while consolidated revenues surged by 107% to P172.3 billion, aided by the recovery in demand and higher international prices.

Meanwhile, infrastructure arm SMC Infrastructure registered consolidated revenues of P6.2 billion, up 44% from the previous year. Operating income surged by 108% to P2.5 billion.

SMC shares were up by 0.19% or 20 centavos to close at P106.50 at the stock exchange on Thursday. — Luisa Maria Jacinta C. Jocson