By Lourdes O. Pilar, Researcher
THE TOP 1,000 corporations in the Philippines showed resilience in 2022 after posting a combined gross revenue of P16.68 trillion, as economic activity picked up after pandemic-related restrictions were lifted.
The BusinessWorld Top 1000 Corporations in the Philippines report showed the firms’ aggregate gross revenue surged by 21.2% in 2022 from P13.76 trillion posted in 2021.
This was the fastest revenue growth in two years following the 13.2% contraction recorded at the height of the coronavirus pandemic in 2020.
BusinessWorld defines gross revenue as the combination of net sales and nonoperating income.
Meanwhile, the top corporations’ combined net income rose by 3.1% to P1.8 trillion in 2022 from P1.75 trillion in the year prior.
The firms’ financial performance reflected the Philippine economy’s strong rebound in 2022.
In 2022, the country’s gross domestic product (GDP) grew by 7.6% in 2022, faster than the 5.7% growth recorded in 2021 and the highest in more than 40 years or since the 8.8% growth in 1976.
It also exceeded the government’s 6.5-7.5% GDP growth target for the year.
On its 37th year, the BusinessWorld Top 1000 ranks private and public stock corporations based on gross revenue using the latest available full-year audited financial statements.
The latest edition of the Top 1000 had a gross revenue cutoff of P2.976 billion, 32% higher than the previous edition’s P2.254 billion.
Out of the 1,000 companies in the list, 827 saw an increase in gross revenue in 2022, higher than the 793 companies in the previous year.
The report showed 631 companies posted a net income growth in 2022, while 369 saw a decline in profit.
There were 70 firms that swung to a profit in 2022 after recording a net loss in the previous year, while 22 companies slumped to a net loss.
Meanwhile, 29 firms remained in the red.
Firms included in the Top 1000 list represented 17 out of the 21 major sectors under the 2009 Philippine Standard Industrial Classification (updated 2019).
Thirteen sectors reported at least double-digit gross revenue growth, with the arts, entertainment and recreation sector’s revenues surging by 116.9% in 2022. The human health sector’s revenues eased to 5.3% in 2022 from 19.3% in the previous year.
On the other hand, revenues of real estate activities declined by 0.8%, while those of the public administration and defense, compulsory social security sector dropped by 10.9%.
The manufacturing sector, which had 290 companies included in the list, accounted for 34.6% of the total gross revenue of the Top 1000 companies in 2022.
The services sector continued to be the main engine of Philippine economic growth, accounting for 51.9% of the aggregate gross revenue in 2022.
Multinational companies included in the Top 1000 list made P5.51 trillion, 17.4% more than in the previous year. They accounted for 33.1% of the Top 1000’s gross revenues.
Exporting firms recorded a 15% increase in revenues to P2.95 trillion, although this was slower than the 19.7% growth in the previous year. The sector accounted for 17.7% of the list’s total gross revenues.
The latest Top 1000 report included 139 corporations, of which 37 are first-time entrants.
Petron Corp. returned as the largest corporation in the Philippines in 2022, ending Manila Electric Co.’s (Meralco) two-year stint as the country’s top-grossing company.
Petron, which last topped the list in 2019, posted P438.87 billion in gross revenue in 2022, which was an 82.1% increase from P240.94 billion the previous year.
The oil refiner and distributor also topped the list in terms of net sales with P430.73 billion, but its net income fell by 4.9% to P2.54 billion. Petron ranked 179th in net income.
Meralco ranked second in the list, as its gross revenue rose by 30.9% to P382.42 billion from P292.09 billion in 2021. It also placed second in net sales with P371.76 billion. The company posted a net profit of P21.69 billion in 2022, up by 1.8% from P21.3 billion in the previous year.
Shell Pilipinas Corp. remained in third spot as its gross revenue jumped by 63.3% to P292.88 billion from P179.39 billion in 2021. The petroleum refinery ranked third in terms of net sales (P291.48 billion) and 109th in net income (P4.08 billion).
Also included in the top 10 were BDO Unibank, Inc. (P209.29 billion in gross revenues); Mercury Drug Corp. (P177.59 billion); PMFTC, Inc. (P176.99 billion); Toyota Motor Philippines Corp. (P173.27 billion); Globe Telecom, Inc. (P158.87 billion); TI (Philippines), Inc. (P154.93 billion); and Philippine Airlines (P145.8 billion).
The Top 1000 magazine also provides a separate table to show how companies compare with each other on a consolidated basis.
With this consolidated table, readers will be able to see how additional revenues com-ing from subsidiaries can boost a conglomerate’s rank.
The top 200 conglomerates list was led by Top Frontier Investment Holdings, Inc. and subsidiaries with P1.58 trillion in gross revenue in 2022, higher by 61.8% from 2021. It is the largest shareholder of San Miguel Corp. (SMC). However, the conglomerate’s net income fell by 45.8% to P23.86 billion in 2022 from P44.06 bil-lion in 2021.
Listed diversified conglomerate SMC and its subsidiaries came in second, with P1.58 trillion in gross revenues, a 61.4% increase from P979 billion previously.
Petron and subsidiaries claimed the third spot with P865.58 billion in gross revenues, a 96.4% increase year on year.
The rest of the top 10 conglomerates included SM Investments Corp. (P557.68 billion); Meralco (P445.34 billion); San Miguel Food and Beverage, Inc. (P360.18); Aboitiz Equity Ventures, Inc. (P335.65 billion); Ayala Corp. (P332.62 billion); JG Summit Holdings, Inc. (P313.98 billion); and GT Capital Holdings, Inc. (P245.31 billion).
The BusinessWorld Top 1000 Corporations in the Philippines can be purchased directly by reaching out to BusinessWorld’s Circulation Department at (+632) 8527-7777 locals 2651 to 2654 or via e-mail at circ@bworldonline.com. The portable document format (PDF) version will also be available for purchase at https://bworld-x.com/.