San Miguel Corp. Earned P1Trillion in 2018 and, No, It’s Not All Because of Beer

2018 was one of the company's biggest years.

After more than a century in business, one of the country’s largest conglomerates, San Miguel Corp. (SMC), remains a formidable cash cow. Case in point: in 2018, the diversified business breached the P1-trillion revenue mark, two years ahead of its target.

“Consolidated revenues reached P1.02 trillion, up 24 percent from the previous year,” the company’s disclosure to the Philippine Stock Exchange, published last week, read. 

What started as a little brewery in the 1890s has now become one of the most diversified companies in the region, with interests ranging from food and beverage to infrastructure and automobiles.

In fact, last year’s strong financial performance was mainly driven by its petroleum business, an industry that it only started to venture into in 2009. Nine years later, that strategy has proven to be a wise one.

Its subsidiary, Petron Corp. already accounts for a majority of the company’s revenues. In 2018, the fuel firm’s combined revenues from its local and international businesses reached P557.4 billion in value, a 28-percent increase from the previous year’s numbers. 


Its other more recent venture in infrastructure now also accounts for more than a tenth of the business. SMC Infrastructure, which runs most of the tollways south of Metro Manila, posted P24.5 billion in revenues in 2018.

Meanwhile, its most popular business segment, food and beverage, now only accounts for 30 percent of the conglomerate’s revenue pie. And yet, San Miguel Food and Beverage Inc. (SMFBI) is still the biggest listed food business in the country with P286.4 billion worth of sales last year, a 14-percent jump from 2017. 

The company’s strong financial performance isn’t likely to be tempered soon, too. SMC is on track to start building its proposed “aeropolis” in Bulacan this year, said to be one of the largest airports in Asia. The company is also in the process of completing the MRT-7 project, which is targeted to start operating by 2021.

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Elyssa Christine Lopez
Elyssa Christine Lopez is a staff writer of Esquire. Follow her on Twitter @elyssalopz
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