San Miguel H1 income rises to P18 B

MANILA, Philippines - Diversifying conglomerate San Miguel Corp.  reported a consolidated net income of P18 billion in the first half, up 15 percent year on year.

The figure, however, excludes the effects of foreign exchange movements.  SMC incurred P1.1 billion in foreign exchange losses as of June 30, a reversal of the forex gains in the same period last year.

Total revenues declined by 16 percent to P338.8 billion due to unfavorable crude prices at the start of the year as well as lower volumes for SMC Global Power as a result of the maintenance shutdown of the Malampaya gas-to-power facility.

Consolidated operating income, meanwhile, grew 23 percent as revenues from core businesses  rose five percent.  The growth was also attributed to the significant profit recovery of Petron Corp. in the second quarter  as a result of more stable crude oil prices.

EBITDA was up 14 percent at P51.8 billion.

By business segment, its beer subsidiary San Miguel Brewery Inc. reported a ten percent growth in net income from January to June to P6.9 billion, on the back of a five percent growth in consolidated revenues which hit P39.8 billion.

For its domestic operations,  volumes were three percent higher at 86.4 million cases.

Ginebra San Miguel Inc., meanwhile, sustained its recovery with consolidated revenues growing eight  percent to P7.5 billion. Operating income jumped 252 percent to P246 million on volume growth and lower alcohol costs resulting from more efficient distillery operations.

 The conglomerate’s food subsidiary San Miguel Pure Foods Co. Inc. posted consolidated revenues of P50.5 billion or three higher than last year, on the back of the solid performance of its branded value-added, feeds and flour businesses.

Operating income went up by two percent to P2.7 billion, as higher revenues and cost breaks improved overall margins with the feeds and branded value-added businesses posting double digit operating performance.

Purefoods’ operating income would have been higher if not for the operating results of the poultry business, which is reeling from significantly depressed selling prices due to the supply glut.

The Food Group net income grew five percent to P1.8 billion.

San Miguel Yamamura Packaging Group’s revenues, meanwhile, grew four percent to P12.0 billion, pushed by higher sales of glass products to beverage companies and exports.

San Miguel’s power business, meanwhile, posted lower volume of 8,153 GWh for the first half, down by seven percent.

The conglomerate’s infrastructure business contributed P5.3 billion in toll revenues, the main bulk of which came from SLEX and Skyway 1 and 2, which were consolidated beginning March.