SMC’s 9-month recurring profit up 20%

DIVERSIFIED conglomerate San Miguel Corp.’s recurring profit jumped by a fifth in the nine months ending September, driven by strong sales volumes complemented by favorable selling prices.

In an investors’ presentation posted on its website, the listed company reported a recurring net income of P52.41 billion, 20% higher than the P43.78 billion it logged in the same period a year ago. This excludes the impact of foreign exchange losses.

Consolidated revenues climbed by 28% to P761.2 billion, against P597 billion in the same period a year ago.

SMC’s newly consolidated food and beverage unit, San Miguel Food and Beverage, Inc. (SMFB), grew its net income by 17% to P22.93 billion, after net sales rose 15% to P206.62 billion during the January to September period.

San Miguel Brewery, Inc. recorded P17.76 billion in earnings, 23% higher year-on-year due to a 16% uptick in net sales to P93.36 billion. Meanwhile, Ginebra San Miguel, Inc.’s profit surged by 81% to P789 million, on the back of a 17% rise in net sales to P17.92 billion.

The performance of the liquor and brewery units offset the weakness of the food group, which saw its net income fall by seven percent to P4.37 billion. Net sales however increased by 13% to P95.35 billion.

Meanwhile, Petron Corp. generated P419.86 billion at the topline, 34% higher year-onyear. This resulted to a minimal increase in earnings at 3% to P12.06 billion. The company attributed the slower bottomline growth to an “industry-wide decline in demand due to high pump prices.”

For SMC Global Power Holding Corp., net sales gained 43% to P89.11 billion. Operating income accordingly went up by 31% to P25.75 billion.

The power unit saw its consolidated off-take volume surge by 38% to 17,670 GWH, lifted by additional generation from its plants in Limay, Malita, and Masinloc, as well as higher contributions from the Sual and San Roque plants.

Net sales of SMC Infrastructure advanced by 10% to P18.13 billion, resulting in a 10% uptick in operating income to P8.91 billion. This was on the back of higher traffic volume on its operating toll roads.

The firm operates the South Luzon Expressway, Skyway Stage 1 and 2, NAIA Expressway, and the Tarlac-Pangasinan-La Union Expressway. It is currently developing big-ticket infrastructure projects such as the Skyway Stage 3, Metro Rail Transit 7, and the Bulacan Bulk Water project.

Shares in SMC shed 1.2% or P2.10 to close at P172.50 each at the stock exchange on Tuesday. —