San Miguel income grows 7% to P26.8B

MANILA, Philippines - Conglomerate San Miguel Corp. reported a consolidated net income of P26.8 billion in the first nine months of the year,  up by seven percent year on year.

The nine-month profit excluded the effects of unrealized foreign exchange losses.

Revenues, however, declined by 15 percent to P504.5 billion owing to the continued drop of crude oil prices and lower generation volumes from scheduled maintenance shutdown of Malampaya facilities, IIlijan and Sual power plants.

Aggregate operating income went up to P58.1 billion from P47.2 billion a year ago on the back of higher revenues from the group’s infrastructure, and core food, beverage and packaging businesses.

By segment, San Miguel’s beer business posted a six percent growth in net income to P10 billion as consolidated sales revenue rose by four percent to P58.8 billion.

Food unit San Miguel Pure Foods Co. Inc. grew its net earnings by seven percent to P2.9 billion on the back of a three percent rise in revenues to P76.6 billion, helped by the solid performance of its feeds and branded value-added businesses. 

Ginebra San Miguel Inc. remained on the growth track with revenues growing by eight percent to P11.5 billion as operating income surged 218 percent to P396 million.

Revenues of San Miguel Yamamura Packaging Group reached P18.2 billion, up by five percent year on year due to a 27 percent growth in its glass business and strong contributions from its Australian operations. 

On the other hand, SMC Global Power saw its revenues drop 10 percent to P59 billion, Operating income likewise declined  12 percent to P19.3 billion.

Petron Corp.’s consolidated net income during the nine-month period amounted to P5.1 billion, 58 percent higher than last year’s P3.2 billion as both domestic and Malaysian operations delivered strong volumes.

The infrastructure business, through San Miguel Holdings Corp., delivered P9 billion in revenues and P5.1 billion in operating income following the consolidation of the Skyway 1 and 2 and the SLEX in March 2015.

Ongoing projects such as the NAIA Expressway and Skyway Stage 3 are set for completion in 2016 and 2017, respectively. Meanwhile, completion of the 1 runway of the Boracay Airport, capable of handling A321 and B737-900ER aircraft, is expected by year-end.