San Miguel group core net profit jumps 21%

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.

The 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 period last year, SMC’s net profit including those attributable to minority interest amounted to P42.95 billion.

Group-wide revenue 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 end-September business.

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

Consolidated operating income hit 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, up 13 percent from a year ago.

Combined revenue 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 revenue.

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 revenue and operating income both grew by 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 revenue hit 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 cogeneration 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. —DORIS DUMLAO-ABADILLA