SMC recurring net income up 11%

San Miguel Corp. grew its recurring net income by 11 percent to P54.7 billion on the back of higher contributions from Petron Corp. and petrochemicals operations, along with the strong performance of its food and beverage businesses.

This excludes the effect of foreign exchange translations and a one-time gain from the sale of SMC’s telco business last year.

Consolidated revenues reached P826 billion, up 21 percent as sales across all its businesses continued to grow while consolidated operating income amounted to P111 billion, 11 percent higher than the P99.7 billion reported the previous year.

SMC, which was once just a beer producer, now has businesses across a wide variety of industries such as food and beverage, liquor, petroleum, power and infrastructure.

Petron Corp., the country’s biggest oil refiner, posted a net income of P14.1 billion, up 30 percent as a result of its continued focus on high-value segments and strong sales volumes from both its Philippines and Malaysian operations.

Consolidated revenues reached P434.6 billion, up 26 percent from P343.8 billion. Operating income was up 16 percent to P27.6 billion.

SMC’s beer business, San Miguel Brewery Inc. posted a net income of P20.7 billion last year, up 17 percent as revenues also rose by 17 percent to P113.3 billion. Volumes reached 260 million cases, 13 percent more than the previous year, driven mainly by favorable economic conditions and SMB’s strong marketing and integrated sales initiatives.

Liquor business Ginebra San Miguel Inc. reported a 67 percent growth in net income to P602 million as sales volumes reached 27.7 million cases for the year, or 10 percent higher than the 2016. Flagship brand Ginebra San Miguel and Vino Kulafu both continued to post double digit growth.

Revenues reached P20.9 billion, a 12 percent increase from 2016.

The food business, San Miguel Pure Foods Co. Inc. likewise recorded another growth year with a net income of P6.9 billion, up 16 percent. Consolidated revenues reached P117.4 billion or five percent higher on the back of the strong performance of its poultry and fresh meats and value-added meats businesses.

San Miguel Yamamura Packaging Group recorded P32.1 billion in revenues, up 17 percent as it continued to broaden its presence in the region. This was driven mainly by continued growth in its Australian operations and higher sales from its glass, metal and plastics businesses.

SMC Global Power Holdings Corp. saw its consolidated revenues rise by six percent to P82.8 billion. Operating income, however, was nine percent lower than the previous year brought about by higher costs, lower bilateral volumes from Ilijan, and the sales of the Limay Cogen plant in 2016.