Conglomerate San Miguel Corp. posted P55.2 billion in consolidated recurring income last year, up by 1 percent from the previous year, as the group breached the P1-trillion revenue milestone for the first time.
SMC’s P1.02 trillion revenue last year were attributed to robust contribution from food, beverage, packaging, fuels and petrochemicals, power and infrastructure units. Full-year earnings, however, were tempered by inventory losses at its fuel and petrochemical businesses alongside some foreign exchange losses.
In the previous year, SMC posted P54.81 billion in net profit out of P826.09 billion in revenue.
The reported net profit level of P55.2 billion included earnings attributable to minority interest.
Consolidated operating income across the group rose by 5 percent to P117.1 billion last year while cash flow rose by 7 percent to P157.9 billion.
“Income growth for the conglomerate was tempered by the sharp decline in crude prices resulting in inventory losses for its fuels and petrochemical business during the fourth quarter of 2018. This was compounded by forex translation losses for the year,” SMC said in a disclosure to the Philippine Stock Exchange on Thursday.
Consumer unit San Miguel Food and Beverage Inc. recorded consolidated revenue of P286.4 billion, 14 percent higher than the previous year, propelled by higher volumes and revenues. Operating income and net income both grew by 8 percent to P45.9 billion and P30.5 billion, respectively.
Power unit SMC Global Power Holdings Corp. boosted its consolidated revenue by 45 percent to P120.1 billion. Operating income rose by 37 percent to P33.2 billion as it grew its energy off-take volume by 39 percent with additional generation output from the Limay, Malita and Masinloc power plants alongside better contributions from the Ilijan and San Roque power plants.
Petron Corp.’s combined revenue from the Philippine and Malaysian operations hit P557.4 billion, up by 28 percent. Consolidated volumes grew slightly from the previous year, partly stirred by strong retail sales of high performance fuels in Malaysia.
Petron’s operating income and net income stood at P18.9 billion and P7.1 billion, down by 32 percent and 50 percent from 2017 level, respectively, mainly due to inventory losses in November and December. Global oil production supply increased during the fourth quarter of 2018, causing a nine-week consecutive fall in international oil prices.
SMC Infrastructure’s consolidated revenue reached P24.5 billion, up 9 percent as vehicular volume at all operating toll roads continued to grow. Operating income also rose by 13 percent to P11.8 billion.
Construction of the Skyway Stage 3 tollroad (from Buendia to Balintawak) and MRT 7 (from Quezon City to Bulacan) is seen to remain on track while its Bulacan Bulk Water project started providing potable water to six Bulacan municipalities early this year.