SMC earnings flat at P48.6 billion in 2019

MANILA, Philippines — San Miguel Corp. (SMC), the country’s diversified conglomerate, posted a net income of P48.6 billion last year, barely unchanged from 2018.

Consolidated revenue amounted to P1.02 trillion, at par with year-ago results.

On the other hand, consolidated operating income was one percent lower at P115.7 billion due to a challenging operating environment faced by Petron Corp. and San Miguel Foods because of the African swine fever.

San Miguel Food and Beverage posted a six percent growth in net income to P32.2 billion as consolidated revenue grew nine percent to P310.8 billion.

Consolidated operating income rose four percent  to P47.8 billion, mainly due to the beer and spirits businesses’ continuing strong performance, partly offset by the slowdown in the food business due to the effect of lower poultry prices during the first half of the year, the impact of African swine fever on hogs costs, coupled with start-up expenses for its new facilities.

The power business, through SMC Global Power Holdings Corp., posted a 73 percent growth in net income to P14.4 billion as net sales increased by 12 percent to P135 billion.

This was the result of higher bilateral sales volumes and longer operating hours for the Sual and Ilijan power plants, SMC said.

Meanwhile, SMC Infrastructure’s operating toll roads posted a combined five percent growth in vehicular traffic volume.

On the other hand, Petron continued to face many challenges throughout 2019. These include the volatile international prices that resulted in significantly weaker margins, a major shutdown of its Bataan Refinery due to an earthquake, the implementation of the second tranche of the excise tax increase, and the continued proliferation of white stations.

Petron Malaysia’s domestic volumes rose three percent, helping offset the decline in domestic volumes.

As a result, Petron’s net income declined 67 percent to P2.3 billion as consolidated revenue fell eight percent to P514.4 billion.

This was on account of lower average selling prices of fuel.