By James A. Loyola
Diversified conglomerate San Miguel Corporation reported a 21 percent hike in recurring net income to P43.8 billion in the first nine months of 2017 from last year’s P36.3 billion
Recurring profit is excluding the effect of foreign exchange translation and the one-time gain from the sale of its telecommunications business last year.
SMC’s revenues rose 20 percent to P597.0 billion for the first nine-months of the year on higher sales mainly from its core food, beverages, and packaging businesses.
Consolidated operating income reached P82.8 billion, 13 percent higher than last year, the result of sustained sales growth across its businesses and a group-wide execution of an effective fixed cost management strategy.
Consolidated EBITDA reached P108.8 billion, 13 percent higher than the previous year.
Recently, SMC announced a plan that would consolidate all its traditional food and beverage businesses under a holding company.
Combined revenues of the consolidated units for the period in review – San Miguel Brewery, Ginebra San Miguel and San Miguel Purefoods – amounted to P180 billion, up 11 percent, making up a significant 30 percent of SMC’s total revenues.
Operating income of the new F&B company rose 17 percent to P29.1 billion while earnings grew 21 percent to P19.55 billion.
San Miguel Yamamura Packaging Group’s revenues and operating income both grew 13 percent to P22.4 billion and P2.2 billion, respectively. The results were attributed to higher sales from its plastics and metal businesses and the continued growth of its Australian operations.
SMC Global Power’s revenues amounted to P62.1 billion, 2 percent higher compared to last year brought about by higher average realization and spot market prices.
Operating income ended 14 percent lower at P19.7 billion, due to higher coal costs, replacement power purchases, lower bilateral volumes, and the sale of the Limay Co-generation plant last year.
Petron Corporation continued to deliver outstanding results, posting profits of P11.8 billion, up 58 percent from last year. This was driven by its continued focus on high-value segments and strong sales volumes from both its Philippine and Malaysian operations.