SMC swings to P18.4-B profit in H1

Conglomerate San Miguel Corp. chalked up a six-month net profit of P18.4 billion, a turnaround from the P2.4-billion loss in the same period last year, as its power and fuels businesses grew at a double-digit pace alongside the steady expansion of traditional food and beverage businesses.

Total revenues for the semester improved by 13 percent year-on-year to P405 billion.

Operating income rose by 14 percent year-on-year to P33 billion on the back of significant second quarter gains in power and fuels, SMC reported on Monday.

Consolidated recurring cash flows as measured by earnings before interest, taxes, depreciation and amortization went up by 11 percent year-on-year to P45.3 billion.

San Miguel Brewery grew its revenues by 3 percent to P37.7 billion as the country’s largest beer-maker sold 102 million beer cases, marginally higher than the same period last year. Operating income for the semester amounted to P10.3 billion.

“Double-digit operating income growth from international operations partially offset weaker domestic margins brought on by an increase in excise taxes at the start of the year,” the company said.

SMC Global Power brought in consolidated revenues of P43.8 billion, 16 percent ahead of last year on higher off-take volume and average prices. Off-take volume went up by 5 percent to 8,789 Gwh due to higher bilateral volume from Sual. Volumes from San Roque also improved with better water reservoir levels, while Ilijan delivered higher spot electricity market volume for the second quarter. Improved revenues and lower generation costs increased six-month operating income by 36 percent to P14.9 billion.

For Petron Corp., both domestic and Malaysian operations delivered solid growth. Doris C. Dumlao