SMC books 244% higher earnings in 2014

MANILA, Philippines - Diversified conglomerate San Miguel Corp. (SMC) yesterday said it booked a net recurring income of P27.9 billion last year, 244 percent higher than 2013, on the back of robust contribution across its traditional and new businesses.

SMC said the growth excludes the one-time gain registered in 2013 from the sale of its Meralco shares, which brought the conglomerate’s net income at that time to P50.7 billion.

Consolidated sales revenues, meanwhile, improved five percent year-on-year to P782 billion as majority of its businesses posted higher sales.

SMC’s flagship beer business, San Miguel Brewery Inc. (SMB), saw its net income rise eight percent year-on-year to P13.5 billion in 2014, while sales revenue grew five percent to P79 billion

 “Domestically, SMB implemented new campaigns and relevant consumer and trade programs to boost equity and beer consumption. Meanwhile, Beer International operations introduced Cerveza Negra and San Mig Light in draught formats and further pushed exports to the overseas market,” SMC said.

Liquor unit Ginebra San Miguel Inc., meanwhile, posted an operating income of P358 million, a turnaround from 2013’s loss of P793 million, on improved volume sales and lower costs.

Food arm San Miguel Pure Foods Company Inc. likewise enjoyed brisk sales last year as revenues breached the P100 billion mark for the first time at P103 billion.

For its packaging business, SMC said its packaging group’s operating income grew 11 percent year-on-year to P2.3 billion, even as revenues declined four percent to P24.2 billion.

 “Improvements in efficiency and cost containment, coupled with improved performance from paper, PET and exports, allowed the group to deliver a substantially higher operating performance,” SMC said.

SMC Global Power finished the year strong with a 26-percent growth in operating income at P25.9 billion, driven by higher bilateral volumes.

Petron, meanwhile, posted an operating profit of P7.6 billion, amid record losses being posted industry-wide. Consolidated net income was better than expected at P3 billion, SMC said.