SMC nets P43.8B

SMC

Conglomerate San Miguel Corp. posted P43.8 billion in core net profit in the first nine months, 21 percent higher year-on-year, on higher earnings from its oil, food, beverage and packaging businesses.

This core income excludes the effect of foreign exchange translation and the one-time gain from the sale of its telecommunications business last year.

In the same nine-month period last year, SMC’s net profit including those attributable to minority interest amounted to P42.95 billion. Recurring net profit in the same nine-month period last year amounted to P36.3 billion.

Group-wide revenues for the nine-month period amounted to P597 billion, up by 20 percent. The group’s food and beverage (F&B) business – planned to be consolidated into San Miguel Pure Foods – made up more than 30 percent of the business.

The 20-percent growth in revenues was driven by higher sales mainly from its core food, beverages, and packaging businesses.

Consolidated operating income reached P82.8 billion, 13 percent higher than last year, the result of sustained sales growth across its businesses and a group-wide execution of fixed cost management strategy. Consolidated cash flow reached P108.8 billion, 13 percent higher than the previous year.

Combined revenues of the consolidated units for the period in review –San Miguel Brewery, Ginebra San Miguel and San Miguel Purefoods –amounted to P180 billion, up 11 percent, making up 30 percent of SMC’s total revenues.

Operating income of the new F&B arm rose by 17 percent to P29.1 billion while earnings grew 21 percent to P19.55 billion.

San Miguel Yamamura Packaging Group’s revenues and operating income both grew 13 percent to P22.4 billion and P2.2 billion, respectively, attributed to higher sales from its plastics and metal businesses and the continued growth of its Australian operations.

SMC Global Power’s revenues amounted to P62.1 billion, 2 percent higher compared to last year, brought about by higher average realization and spot market prices. Operating income ended 14 percent lower at P19.7 billion, due to higher coal costs, replacement power purchases, lower bilateral volumes, and the sale of the Limay Co-generation plant last year.

Petron Corp. delivered net profit of P11.8 billion, up 58 percent from last year. This was driven by its continued focus on high-value segments and strong sales volumes from both its Philippine and Malaysian operations.