SMC recurring income up 15%

MANILA, Philippines - San Miguel Corp. remained in the red in the third quarter as foreign exchange losses wiped out the strong results of its food, fuel and liquor units.

Without unrealized forex losses, San Miguel’s recurring net income would be P11.1 billion in the nine months to September, up 15 percent year on year.

Consolidated revenues rose seven percent to P543 billion, due mainly to the full consolidation of Petron Malaysia and increased revenues from the food unit.

Groupwide EBITDA amounted to P62.4 billion, 15 more than the previous year.

Operating income likewise improved by 25 percent to P46 billion. This was attributed to improved margins from Petron’s domestic operations and San Miguel Brewery’s international operations, lower operating losses at hard liquor unit Ginebra San Miguel and sustained growth in its food and power units, San  Miguel Pure Foods and SMC Global Power.

The continued strengthening of the dollar against the local currency, however, resulted in unrealized foreign exchange losses of P12.3 billion, a reversal of the forex gains in 2012.

“We have seen the peso start to appreciate against the dollar beginning October, so we see a reversal of some of the foreign exchange losses. Furthermore, the sale of the Meralco shares, expected to be completed before year-end, will yield additional income,” SMC chairman and chief executive officer Eduardo M. Cojuangco Jr., said.

SMB’s revenues were flat at P53.6 billion as sales volumes fell after the company raised prices due to higher excise taxes on major domestic brands. GSMI, on the other hand, registered P9.9 billion in revenues amid strong third quarter results which showed volumes growing 27 percent.  

San Miguel Pure Foods Company Inc., meanwhile, contributed  P71.4 billion in revenues, up three percent due to the improved performance of its branded value-added businesses.