SMC’s H1 net profit down 8% to P16.9B

CONGLOMERATE San Miguel Corp.’s six-month net profit declined by 8-percent year-on-year to P16.9 billion on foreign exchange losses and lower power generation output linked to plant maintenance activities.

Excluding non-recurring items such as foreign exchange losses, SMC posted a six-month consolidated net profit of P18 billion, 15 percent higher year-on-year, as most operating units chalked up higher earnings for the period.

The net profit of P16.9 billion reported by SMC referred to earnings that include minority interest.

In a press statement late Tuesday, the company said it incurred about P1.1 billion in forex losses in the first semester compared to the forex gains in the same period last year.

SMC reported P40.7 billion in consolidated operating income for the first half of the year, a 23 percent increase over the same period last year, driven by the 5 percent combined revenue growth in its core businesses, the significant profit recovery of Petron in the second quarter as a result of more stable crude oil prices, and higher contribution from its infrastructure business.

The conglomerate said unfavorable crude prices at the start of the year, along with lower volumes for SMC Global Power as a result of the maintenance shutdown of the Malampaya gas facilities, however, resulted in a 16-percent year-on-year decline in SMC’s consolidated revenues to P338.8 billion in the first semester.

Consolidated cash flow as measured by earnings before interest, taxes, depreciation and amortization (EBITDA) reached P51.8 billion, 14 percent higher than the first semester of 2014.

It was earlier reported that San Miguel Brewery Inc.’s net income for the first half of the year had expanded by 10 percent year-on-year to P6.9 billion. Consolidated revenues grew by 5 percent, reaching P39.8 billion, driven mainly by domestic operations, with volumes rising by 3 percent to 86.4 million cases.

Liquor unit Ginebra San Miguel Inc. reported a growth in six-month consolidated revenues of 8 percent year-on-year to P7.5 billion, on the back of a 4-percent volume growth. Operating income also jumped by 252 percent year-on-year to P246 million on volume growth and lower alcohol costs resulting from more efficient distillery operations.

Food unit San Miguel Pure Foods Co. Inc.’s net income grew by 5 percent year-on-year to P1.83 billion in the first semester.

San Miguel Yamamura Packaging Group’s revenues grew by 4 percent year-on-year to P12 billion on higher sales of glass products to beverage companies and exports.

Operating income, meanwhile reached P1.1 billion, 7 percent higher than last year, driven by higher production efficiency and cost management programs.

On the power business, SMC Global Power’s off-take volume of 8,153 gigawatt hours for the first half of the year ended 7 percent lower than last year. The Ilijan power plant delivered lower bilateral volumes due to the scheduled maintenance outage of Malampaya in the first quarter; the plant’s annual maintenance, and occasional gas supply restrictions. The Sual, San Roque and the Limay Cogeneration power plants, however, delivered higher volumes.

Petron Corp.’s operating income grew by almost 50 percent year-on-year to P8.9 billion as crude prices became more stable in recent months. Net income also grew by 13 percent year-on-year to P3.4 billion, of which P3.2 billion was earned in the second quarter.

San Miguel Holdings Inc., SMC’s infrastructure business contributed P5.3 billion in toll revenues for the first half of the year, bulk of which was attributed to South Luzon Expressway and Skyway 1 and 2, which were consolidated into SMC’s books beginning March. Operating income amounted to P3 billion.