San Miguel boosts profit 21% to P43.8 B

Diversified conglomerate San Miguel Corp. reported a recurring net income of P43.8 billion during the first nine months, up 21 percent year on year.

In a statement, SMC said it was able to generate revenues of P597 billion or an increase of 20 percent because of higher sales from its core food, beverages, and packaging businesses.

Consolidated operating income reached P82.8 billion, 13 percent higher than last year, as a result of sustained sales growth across its businesses and a group-wide execution of an effective fixed cost management strategy.

Consolidated EBITDA rose 13 percent to P108.8 billion.

SMC’s businesses are food and beverage, packaging and fuel and oil and in recent years, infrastructure and power.

The packaging arm San Miguel Yamamura Packaging Group saw revenues and operating income grow to P22.4 billion and P2.2 billion, respectively.

“The results were attributed to higher sales from its plastics and metal businesses and the continued growth of its Australian operations,” SMC said.

SMC Global Power’s revenues grew two percent to P62.1 billion brought about by higher average realization and spot market prices.

Operating income, on the other hand, was 14 percent lower at P19.7 billion due to higher coal costs, replacement power purchases, lower bilateral volumes, and the sale of the Limay Co-generation plant last year.

Oil refiner Petron Corp. continued to deliver outstanding results with net earnings growing 58 percent to P11.8 billion on the back of strong sales from both its Philippine and Malaysian operations.

Combined revenues of San Miguel Brewery, Ginebra San Miguel and San Miguel Purefoods – amounted to P180 billion, up 11 percent. This translated to 30 percent of SMC’s total revenues.