SMC, SMIC Phl growth drivers

The Philippines’ two largest conglomerates are powering the country’s robust economic growth this year and in the coming years.

Having demonstrated unprecedented expansion in the past 25 years, both San Miguel Corp. and SM Investments Corp. (SMIC) are defining the economy’s growth trajectory and strategies of the next quarter century.

SMC is banking on massive industrialization – heavy investments in infrastructure, energy, industrial plants and consumer goods to generate the double-digit growth it needs to maintain its market dominance and exploit its first mover advantage in a number of growth areas. San Miguel’s slogan is – “Your World Made Better.”

For its part, SMIC is banking on consumption (which accounts for 84 percent of GDP on the spending side) – and calibrated diversification into new growth sectors to remain dominant in businesses it knows best – retailing, property, banking and savvy portfolio investments. SM Group’s slogan is — “We’ve Got It All for You.”

San Miguel is the biggest conglomerate in terms of assets (P2.459 trillion), revenues (P1.5 trillion) and diversity of businesses. About six percent of Philippine GDP is produced by SMC alone.

Under president and CEO Ramon S. Ang, SMC is No. 1 in at least ten businesses – food manufacturing (Purefoods), beer and beverages (SanMig), power generation, tollways, cement, airports, petroleum oil refining and marketing (Petron) and super luxury cars (BMW and Ferrari). SMC has more than 100 industrial plants in the Philippines and the rest of Asia.

SMC reported strong full-year profits for 2023, with a 67 percent gain in consolidated net income to P44.7 billion.

The huge profit jump was driven by significant volume growth across its key businesses, including San Miguel Brewery Inc., Ginebra San Miguel Inc., Petron and SMC Infrastructure, together with the integration of Eagle Cement Corp.’s financial results.

SMC’s strategic focus on operational efficiencies and sustainability initiatives contributed to a 24 percent increase in EBITDA to P205.3 billion and a 34 percent rise in consolidated operating income to P144.5 billion.

“We had a strong finish in 2023,” gushes Ang, SMC’s vice chairman since 1999