SMC income up 21% on group-wide rally

Conglomerate San Miguel Corp. (SMC) grew its core net profit in the first semester by 21 percent year-on-year to P27.6 billion on higher earnings across most of its businesses.

Including the impact of foreign exchange adjustment and one-time gain from the sale of its telecommunication business last year, SMC’s headline net profit fell by 26 percent to P26.1 billion.

The earnings reported by SMC on Thursday included those attributable to minority interests.

Consolidated operating income reached P53.4 billion, 10 percent higher than last year. In addition to the higher sales sustained by most of the businesses, SMC also reported better management of fixed costs across the group.

Group-wide cash flow reached P70.8 billion, 12 percent higher than the previous year.

Except for the power business, all traditional and new businesses contributed higher earnings.

SMC Global Power’s revenues and operating income amounted to P40.7 and P13.3 billion, respectively, both lower than last year as a result of the scheduled annual maintenance shutdown of the Ilijan and the Malampaya facilities earlier this year.

San Miguel Brewery Inc. grew its net income by 14 percent year-on-year to P9.4 billion. Consolidated revenues and operating income each grew by 12 percent to P53.1 billion and P14 billion, respectively.

Liquor unit Ginebra San Miguel Inc. chalked up first semester net profit of P265 million, almost double from last year as revenues rose by 20 percent to P10.1 billion. Operating income increased by 44 percent to P594 million.

San Miguel Pure Foods Co. Inc. boosted its first semester net profit by 26 percent to P3.1 billion. Revenues rose by 5 percent to P55.9 billion due to higher volumes and favorable selling prices from the agro-industrial and processed meat businesses. Operating income grew by 24 percent to P4.5 billion.

San Miguel Yamamura Packaging Group’s revenues reached P14 billion, 4 percent up, due to improved sales from its plastics and metal businesses and higher contribution from its Australian operations. Operating income grew 6 percent to P1.4 billion.

Petron Corp. grew six-month net profit by 56 percent to P8.2 billion as it focused on more profitable segments and improved refinery production yields.

Consolidated revenues rose by 28 percent to P207 billion while operating income also grew by 27 percent to P14.6 billion.

Revenue contribution from SMC’s infrastructure business increased by 11 percent to P10.9 billion in the first semester, thanks to the sustained growth of traffic volumes from operating toll roads. Operating income amounted to P5.2 billion, up by 4 percent.

The conglomerate also reported the schedules of ongoing infrastructure projects, such as the Skyway Stage 3 and Tarlac-Pangasinan-La Union Expressway Section 3, remained on track.