San Miguel Corp. sees $20-billion revenues this year

MANILA, Philippines - Diversified conglomerate San Miguel Corp. (SMC) said it expects to hit its $20-billion revenue target for 2015 this year on increased contributions from new acquisitions.

“We believe by end of 2012, we will have $20-billion sales revenue,” SMC president Ramon Ang told reporters yesterday.

SMC, he said, initially aimed to hit the $20-billion target by 2015 but now sees reaching this level by the end of this year, or three years ahead of schedule, through its acquisitions.

“Three years ago, before our diversification, sales revenue was around $3 billion so (the) $20-billion (target) is very ambitious,” Ang said.

He said meeting the 2015 revenue target ahead of schedule shows that SMC acquired profitable companies.

The company, he said, is still looking to acquire other businesses given that there are still many opportunities available both within the country and overseas.

Last month, SMC bought a 49-percent stake in flag carrier Philippine Airlines (PAL).

PAL suffered a total comprehensive loss of $33.5 million in the three months ending December compared with a net profit of $15.1 million a year earlier, due to rising fuel costs as well as labor problems.

Ang said they are still preparing its plans when asked when a turnaround in losses will be seen for PAL.

“We are happy with this acquisition and confident that its operations will go smoothly,” he said.

Apart from PAL, the food and beverage giant’s other acquisitions include Petron, the country’s largest oil refiner, US giant Exxon Mobil’s refinery and petrol retail stations in Malaysia, and a third of Manila Electric Co.

SMC is also involved in infrastructure projects such as the building of toll highways, rail systems and an airport.