Beer, power sales boost San Miguel’s Q1 earnings

Diversified conglomerate San Miguel Corp. expanded its first-quarter net profit by 19 percent year on year to P8.5 billion fueled by higher operating profits chalked up by its beer brewery, power and packaging businesses.

Group-wide sales revenues grew by 12 percent to P142 billion from the comparative level last year while core cash flow based on earnings before interest, taxes, depreciation and amortization rose by 6 percent year on year to P21.6 billion. Operating income amounted to P14.8 billion.

The operating units that reported higher operating profits in the first three months were as follows:

San Miguel Brewery expanded both operating income and consolidated revenues by 5 percent to P5.3 billion and P18.3 billion, respectively. This was attributed to improvements in efficiency, management of fixed costs and significant improvements in international operations. Overseas volume improved by 9 percent, with Indonesia, Hong Kong and Thailand posting good numbers and China showing much improvement;

San Miguel Global Power grew its operating profit by 46 percent to P4.96 billion as net sales expanded by 19 percent to P19.36 billion; and

The San Miguel Packaging Group posted a 3 percent improvement in revenue at P5.9 billion, aided by higher domestic sales and solid performance from its export business. Operating income for San Miguel Yamamura Packaging improved by 11 percent to P511 million, which was attributed to efficiency initiatives, fixed cost management and lower raw material prices.

On the other hand, San Miguel Pure Foods Co. Inc. posted a 58 percent year-on-year decline in first-quarter operating income to P659 million as higher raw material prices and the proliferation of import commodity products took a toll. However, consolidated revenues of P22.4 billion were 9 percent higher than the level in the same period last year, in turn due to higher demand and favorable selling prices across its businesses.

Oil-refining unit Petron Corp. also reported a 35-percent decline in operating income to P4.6 billion from a year ago.