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San Miguel says recurring net income hits P27.6B in 1st half

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SAN MIGUEL Corp. (SMC) saw a 21% increase in recurring profit in the first semester of 2017, lifted by higher sales across its core businesses of fuel and oil, infrastructure, beverages and food, and packaging.

In a statement issued on Thursday, diversified conglomerate said it booked a recurring net income of P27.6 billion, up from the P22.8 billion it generated in the same period last year. The first semester also saw revenues climb 20% to P393.4 billion.

Including the one-time gains recorded from the sale of its telecom business in 2016 and effect of foreign exchange translation, SMC’s reported income fell 26% to P26.1 billion from last year’s P35.3 billion.

Consolidated operating income went up 10% to P53.4 billion, which the company attributed to higher sales and better management of fixed costs.

Consolidated EBITDA (earnings before income, tax, depreciation, and amortization), meanwhile, edged 12% higher to P70.8 billion year on year.

SMC’s beer business through San Miguel Brewery, Inc. posted a 14% growth in earnings to P9.4 billion, as revenues likewise jumped 12% to P53.1 billion. Ginebra San Miguel, Inc.’s net income almost doubled in the first semester to P265 million, driven by a 20% rise in revenues of P10.1 billion.

Higher volumes and better selling prices of poultry, fresh meats, and value-added meats lifted San Miguel Pure Foods Company, Inc.’s net income by 26% to P3.1 billion. The company saw a 5% increase in revenues to P55.9 billion.

SMC’s power business, meanwhile, was weighed down by the scheduled annual maintenance shutdown of the Ilijan and the Malampaya facilities, as its operating income dropped by 15% to P13.3 billion. Revenues for the group were flat at P40.7 billion, from the P41.1 billion a year ago.

Meanwhile, Petron Corp. exhibited a 28% growth in revenues to P207 billion, pushing its net income 56% higher to P8.2 billion.

“This was driven by a deliberate focus on more profitable segments as well as improved refinery production yields,” the company said. Petron is currently building up its terminal capacities in order to support the demand for its products, as well as support the volume of its 2,900 service stations.

For the infrastructure segment, operating income inched up 4% to P5.2 billion, following revenues that rose 11% to P10.9 billion. The company attributed the increase to the sustained growth of traffic volumes in its operating toll roads.

Operating income of the company’s packaging arm through San Miguel Yamamura Packaging Group was higher by 6% to P1.4 billion, as it saw better sales from its plastics and metal businesses.

Shares in SMC added 10 centavos or 0.1% to P101.6 apiece on Thursday. — Arra B. Francia

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