SMC nets P11.9B in 9 months
MANILA, Philippines—Conglomerate San Miguel Corp posted a 6-percent year-on-year drop in net profits for the first nine months to P11.9 billion largely due to one-time gains from the consolidation of power businesses that propped up comparative earnings last year.
Excluding non-recurring items, SMC’s core net income for the January to September period rose by 41 percent year-on-year to P11.6 billion, which the company attributed to significant contributions from its fuel and power businesses as well as steady growth in traditional food and beverage businesses.
The major non-recurring item booked by SMC in 2010 was a P4.1 billion gain from the consolidation of power generation interests in SMC Global Power. As SMC hiked its interest in the power unit to 100 percent from 40 percent, thereby completing its transformation from a food- to a power-based conglomerate, there was revaluation gain for the company last year.
Meanwhile, the difference between the reported and core net income in the first nine months this 2011 was due to non-recurring gains from the sale of SMC’s interest in the 620-megawatt diesel-fired Limay power plant. This transaction was recognized by SMC in its books last August.
SMC’s nine-month consolidated sales revenue reached P393.4 billion, rising by 143 percent from last year’s level. Consolidated operating income likewise surged by 112 percent to P42 billion compared to a year ago.
The key operating units of SMC performed in the first nine months compared to year-ago levels as follows:
Oil refiner Petron Corp. grew its net income by 42 percent to P7.6 billion. Revenues grew by 19 percent to P202 billion due largely to an increase in exports and sales of higher-margin petrochemicals;
San Miguel Brewery Inc. grew revenues by 7 percent to P52.1 billion as volume sales improved by 3 percent to 165.8 million cases. Operating income rose by 9 percent to P14.7 billion, owing to higher volumes, managed fixed costs and improvements in overseas operations.
San Miguel Food group boosted net revenue sales by 11 percent to P64.3 billion on the back of higher volumes and higher average selling prices. Operating income rose by 2 percent to P4.3 billion;
San Miguel Yamamura Packaging reported consolidated sales revenue of P17.7 billion, up by 4 percent year-on-year while operating income grew by 8 percent to P1.6 billion;
Ginebra San Miguel saw a 31-percent drop in net revenue sales to P11.5 billion due to soft demand for liquor products.
