SMC posts 244% growth in recurring net income

Conglomerate San Miguel Corp. posted a net recurring income of P27.9 billion in 2014, 244 percent higher than the level in 2013, on the back of significant growth across its traditional and new businesses.

The amount excludes the one-time gain in 2013 from the sale of its Meralco shares, which brought its net income at that time to P50.7 billion.

Consolidated sales revenue reached P782 billion, 5 percent higher than the previous year, while operating income improved 1 percent to P55.8 billion.

In the meantime, consolidated Ebitda reached P88.1 billion, 14 percent higher than the 2013 level.

San Miguel Brewery Inc.’s consolidated sales volume grew to 207.3 million cases, 2 percent higher than year-ago level. Domestically, SMB implemented new campaigns and relevant consumer and trade programs to boost equity and beer consumption.

Beer International operations introduced Cerveza Negra and San Mig Light in draught formats and further pushed exports to the overseas market. Consolidated sales revenue grew 5 percent to P79.0 billion.

Operating efficiencies and cost management, coupled with volume improvement, brought consolidated operating income to P22.1 billion, a 2-percent growth versus last year. Beer International operations, in particular, contributed double-digit improvement in operating income. Net income grew 8 percent to P13.5 billion.

Ginebra San Miguel Inc. posted an operating income of P358 million–a turnaround from 2013’s loss of P793 million on improved volume sales and lower costs. Domestic liquor volume rose 4 percent, resulting in an 8 percent revenue growth to P15.5 billion.

It was another growth year for San Miguel Pure Foods Company Inc., as revenues reached P103 billion. This is a 3 percent improvement from last year, on the back of the strong performance of its Agro-Industrial, Flour Milling and Foodservices businesses. Operating income grew 17 percent to P6.5 billion. Net Income ended at P3.8 billion, 6 percent lower than 2013, when the company posted gains from the Meralco share sale.

San Miguel’s packaging group’s operating income grew 11 percent to P2.3 billion, even as revenues declined 4 percent to P24.2 billion. Improvements in efficiency and cost containment, coupled with improved performance from paper, PET and exports, allowed the group to deliver a substantially higher operating performance.