SMC core profit rises by 54% in 9 months

MANILA, Philippines — Conglomerate San Miguel Corp. (SMC) saw its core net income expand by more than half in the first nine months on the back of improved operational efficiency across its key businesses and sustained cost management efforts.

SMC reported a 54-percent increase in core net income to P60.3 billion, excluding foreign exchange and one-off items, in the first three quarters.

Operating income rose by 13 percent to P137.4 billion, while consolidated EBITDA grew by 16 percent to P194.3 billion.

SMC said that strong contributions from the food, spirits, power and infrastructure units helped offset external pressures on the fuel and oil segment.

Total consolidated revenues for the nine-month period reached P1.1 trillion, slightly lower year-on-year due to softening crude prices and the de-consolidation of select power assets.

“Despite factors outside our control, we delivered strong results and continued making steady progress on our major projects,” SMC chairman and CEO Ramon Ang said.

Ang said the group is preparing for higher consumer activity in the final quarter of the year as holiday demand picks up.

From January to September, San Miguel Food and Beverage Inc. generated consolidated revenues of P302.9 billion, up by four percent year-on-year, led by Ginebra San Miguel and San Miguel Foods.

Petron Corp. also achieved higher sales, posting combined volume of 84.7 million barrels for Philippines and Malaysia.

SMC attributed Petron’s growth to improvement in Philippine retail and commercial sales. However, due to lower Dubai crude prices, revenues decreased by 10 percent year-on-year to P594.9 billion.

SMC Global Power Holdings Corp., meanwhile, recorded revenues of P118.8 billion, 23 percent lower year-on-year due to the deconsolidation of Ilijan and Excellent Energy Resources Inc. as well as softer coal and spot market prices.

Revenues of SMC Infrastructure grew by seven percent to P29.6 billion, supported by higher traffic across all toll roads, with average daily vehicle count  of up to 1.07 million.

For SMC’s cement business, consolidated revenues stood at P25.5 billion, down by six percent year-on-year, amid the continued influx of cheap imports and weaker volumes.