Coronavirus pandemic explodes revenues of top 1,000 Filipino businesses
Through Ana Olivia A. Tirona, Searcher
The country’s top 1,000 companies saw their combined gross revenues decline for the first time in 2020 as the economy grapples with the effects of the 2019 coronavirus disease (COVID-19) pandemic.
The aggregate gross turnover of the top 1000 companies was 10,796 billion pesos, 13.2% lower than the 12,439 billion pesos earned by the same list of companies in 2019. Meanwhile , their combined net income fell 39.5 percent to 889.346 billion pesos. of P1.469 trillion recorded the previous year.
Now on his 35e year, BusinessWorld Top 1000 Companies in the Philippines ranks private and public entities based on gross revenues using the latest available annual audited financial statements.
The contraction in gross revenues reflected the decline in economic output amid the onset of the COVID-19 pandemic last year which prompted businesses to close shop, suspend operations, or operate below full capacity . The Philippine economy contracted a record 9.6% in 2020 in real terms (-8.1% in current prices), its worst performance since the 1940s.
The latest edition of Top 1000 had a gross turnover of P1.563 billion, 16% lower than the P1.870 billion of the previous edition, taking into account the financial statements that were collected.
Manila Electric Co. (Meralco) picked up the number. 1 place in this year’s edition with P266.055 billion gross revenue in 2020. However, this is a decrease of 13.9% from the previous year’s gross revenue of P309.090 billion . Likewise, its net profit fell 29.1% to P14.628 billion from P20.644 billion.
Second on the list is BDO Unibank, Inc., which saw its gross revenue contract 4.7% to P186.951 billion last year, from P196.226 billion. The lender’s net profit amounted to P28.606 billion, down 35.3% from P44.233 billion the previous year.
Petron Corp. ranked third with gross sales of 179.452 billion pesos, down 44.5% from the 323.273 billion pesos posted in 2019. The oil refiner and distributor reported net losses of 11.202 billion of pesos, a reversal of its net profit of 114 pesos .923 million the previous year.
The top 10 is completed by PMFTC, Inc. with a turnover of 176.939 billion pesos; Mercury Drug Corp., 161.928 billion pesos; Philippines Shell Petroleum Corp., 158.002 billion pesos; Nestlé Philippines, Inc., 135.735 billion pesos; Globe Telecom, Inc., 135.519 billion pesos; Puregold Price Club, Inc., 125.888 billion pesos; and Metropolitan Bank & Trust Co., 113.849 billion pesos.
the Top 1000 the publication also includes a separate classification table of these companies which include their respective subsidiaries. This is different from the main top 1000 list in which the financial statements of the parent companies only are used to recognize only the capitalized profits of the parent companies of their subsidiaries and associated companies.
In this year’s top 200 “consolidated” companies, Top Frontier Investment Holdings, Inc. and its subsidiaries lead the list with gross revenue of P 774.294 billion in 2020, down 27.5% from compared to the previous year.
The combined business units of San Miguel Corp. and SM Investments Corp. ranked second and third with gross profits of 773.569 billion pesos (-27.6%) and 396.751 billion pesos (-21.7%), respectively.
The rest of the top 10 included Petron Corp. and its subsidiaries with a turnover of 290.369 billion pesos; San Miguel Food and Beverage, Inc. and its subsidiaries, 281.643 billion pesos; Meralco and its subsidiaries, 279.161 billion pesos; Ayala Corp. and its subsidiaries, 239.031 billion pesos; JG Summit Holdings, Inc. and its subsidiaries, 226.395 billion pesos; BDO and subsidiaries, 212.241 billion pesos; and Aboitiz Equity Ventures, Inc. and its subsidiaries, 201.645 billion pesos.
Of the 18 industries represented by the top 1,000 companies, 14 saw their combined gross sales decline and 11 posted double-digit declines. Gross profits for manufacturers, which accounted for 36.2% of the 2020 total, fell 13.2%. Similarly, those of wholesale and retail trade (19.2% share) and financial and insurance activities (16.9% share) contracted by 9.8% and 7.0% respectively. .
The list included 370 multinational companies, accounting for 37.1% of the total gross revenue of the top 1,000 this year. Its gross income was 4,010 billion pesos, 8.9% lower than in 2019.
Exporting companies included in the top 1000 recorded a turnover of 2,046 billion pesos, down 6.9% from the previous year. They represented 19% of total gross turnover in 2020.
BusinessWorld Top 1000 Companies in the Philippines can be purchased at select National Book Store, Powerbooks, Full Booked, Office Warehouse, and Rustan’s Supermarket locations. These can also be purchased directly through Business worldTraffic Department at (+632) 8535-9901 loc. 256-257 or (+63) 917 658 4564. You can also send an e-mail to [email protected] or contact the research department at [email protected] for more detailed information. The portable document format (PDF) version will be available in January 2022.