July 19, 2018, 6:00 am
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Conglomerate’s recurring profit hits P55B

San Miguel Corp. said it posted a recurring profit of P54.7 billion last year, up 10.73 percent from the prior year’s P49.4 billion. 

“This excludes the effect of foreign exchange translations and a one-time gain from the sale of its telco business last year,” the company said as it fails to release its actual bottomline.   

In 2016, San Miguel posted profit of P29.29 billion, attributable to shareholders. 

San Miguel in a statement said its “strong 2017 results” were fueled by “higher contributions from subsidiary Petron Corp.’s Philippines, Malaysia, and petrochemicals operations, along with its food and beverage businesses.” 

Revenues reached P826 billion, up 21 percent from P685.31 billion, as sales across all its businesses continued to grow. 

“Consolidated operating income amounted to P111 billion, 11 percent higher than the P99.7 billion reported in the previous year,” the company said. 

Earnings before interest depreciation and amortization (EBITDA) hit P147.3 billion, up 13 percent. 

The beer business under San Miguel Brewery (SMB) Inc. recorded a  profit of P20.71 billion, 17 percent higher than the prior year’s P17.66 billion. Revenues reached P113.3 billion, up 17 percent from P97.16 billion. 

“Volumes reached 260 million cases, up 13 percent from the previous year, driven mainly by favourable economic conditions and SMB’s strong marketing and integrated sales initiatives,” San Miguel said.   

“With the strong performance of its domestic operations and contributions from its international operations, operating income and net income reached P31.2 billion and P20.7 billion, 15 percent and 17 percent higher than 2016,” it added. 

The liquor business under Ginebra San Miguel Inc., meanwhile posted profit of P602 million, up 67 percent from P361 million a year ago.

Sales were at 20.9 billion, up 12 percent from P18.57 billion a year ago, due to  strong results for the fourth straight year with sales volume at 27.7 million cases, a 10 percent increase over 2016. 

“Flagship brand Ginebra San Miguel and Vino Kulafu both continued to post double digit growth,” the company said. 

The food business under San Miguel Pure Foods Co., Inc., meanwhile saw profit hitting P6.91 billion, up 16 percent from P5.98 billion. Revenues stood at P117.4 billion, up 5 percent from the prior year’s P111.59 billion, on the back of the strong performance of its poultry and  fresh meats and value-added meats businesses.   

“With favorable selling prices, a better sales mix, and lower costs for some major raw materials, operating income rose 11 percent to P9.9 billion,” it said.   

The packaging business under San Miguel Yamamura Packaging Group posted revenues of P32.1 billion, up 17 percent from P27.39 billion a year ago, as it continued to broaden its presence in the region in 2017. 

“This was driven mainly by continued growth in its Australian operations and higher sales from its glass, metal and plastics businesses,” it said. 

“Operating income grew 16 percent to P3  billion,” San Miguel added. 

The power business under SMC Global Power Holdings Corp.  posted revenues of P82.8 billion, up 6 percent from P77.97 billion, the result of higher realization prices from both bilateral and spot sales. 

Its operating income, however, was down to P24.28 billion, a 9-percent drop  from P26.73 billion a year ago due to higher costs, lower bilateral volumes from Ilijan and the sales of the Limay Cogen plant in 2016. 

“However, with lower unrealized forex losses, net income significantly increased to P8.2 billion,” the company said. 

The oil business under Petron Corp. posted profit of P14.09 billion, up 30 percent from P10.82 billion a year ago, in what San Miguel called “a phenomenal year” as a result of its continued focus on high-value segments and strong sales volumes from both its Philippines and Malaysian operations. 

Consolidated revenues reached P434.6 billion, up 26 percent from 2016’s P343.8 billion, and operating income was up 16 percent to P27.6 billion. 
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