SMC earnings double to P35.3 B in H1

MANILA, Philippines - Diversified conglomerate San Miguel Corp. more than doubled its net income in the first semester to P35.3 billion, boosted by the sale of its telecommunications business.

Consolidated EBITDA reached P63.4 billion or 21 percent higher than the previous year.

Operating income rose 19 percent to P48.8 billion.

The growth was also attributed to sustained growth of its core businesses, better refining margins for Petron, and higher returns from its power and infrastructure subsidiaries.

The sale of San Miguel’s telco business resulted in a one-time gain of P11.8 billion, representing mainly recovery of costs and losses, interest expenses and provisions incurred in previous years. 

San Miguel Brewery Inc. posted a net income of P8.3 billion during the period, 20 percent higher than last year while Ginebra San Miguel Inc’s net earnings surged to P138 million from P5.4 million.

Food unit San Miguel Pure Foods sustained its momentum throughout the first half as net income grew 37 percent to P2.5 billion.  The strong performance of its feeds, poultry and branded value-added businesses resulted in a 31-percent increase in operating income to P3.6 billion.

San Miguel Packaging Group, meanwhile, registered revenues of P13.5 billion, up 12 percent driven by its glass business and Australian operations, which posted double-digit growth.

For its power business, SMC Global Power’s consolidated off-take volume reached 9,264 gigawatts per hour, 14 percent higher than the year ago.

Petron Corp., likewise, sustained its strong performance posting a consolidated net income of P5.3 billion or an increase of 55 percent due to higher sales volumes, aggressive network expansion, improved production and cost efficiencies, and focused customer-centric campaigns.

Infrastructure arm San Miguel Holdings Corp., meanwhile, generated revenues of P9.78 billion or 14 percent higher the year before. Continuous growth in traffic volume boosted revenues of its toll roads.