MANILA, Philippines - Diversifiying conglomerate San Miguel Corp. said its net income expanded 19 percent in the first quarter this year to P8.5 billion, buoyed by solid contributions across most of its businesses.
Consolidated sales rose 12 percent to P142 billion as majority of its businesses posted strong revenue growth as a result of higher volumes and increased selling prices.
Recurring EBITDA (earnings before interest, taxes, depreciation and amortization) improved six percent to P21.6 billion. Operating income, however, fell 13 percent to P14.8 billion.
San Miguel, the country’s dominant food and drinks maker for decades, recently added airlines to its investment portfolio with the purchase of a 49 percent stake in the holding company that owns and operates flag carrier Philippine Airlines and sister low-cost airline Air Philippines.
Flagship firm San Miguel Brewery Inc. registered revenues of P18.3 billion, five percent higher than the year earlier, as overseas volumes climbed nine percent with Indonesia, Hong Kong, and Thailand posting good numbers and China showing much improvement.
Operating income went up five percent to P5.3 billion with improvements in efficiency, management of fixed costs, and significant improvements in international operations.
San Miguel’s food group, under San Miguel Pure Foods Co. Inc., raked in revenues of P22.4 billion, up nine percent from the year earlier level. The growth was attributed to higher demand and favorable selling prices across its businesses. However, higher raw material prices and the proliferation of import commodity products took a toll on its operating income, amounting to P659 million.
The packaging group, meanwhile, reported a three percent rise in revenues to P5.9 billion, driven by higher domestic sales and solid performance from its export business.
Operating income for San Miguel Yamamura Packaging expanded 11 percent to P511 million as a result of efficiency initiatives, fixed cost management and lower raw material prices.
Oil firm Petron Corp. recorded a four percent growth in sales volume, with more than 12 million barrels sold in the first quarter. Most of its products registered positive growth, with domestic volumes rising eight 8percent, resulting to a 17 percent rise in revenues to P74.7 billion.
Meanwhile, San Miguel said it is consolidating its infrastructure business with the fast-tracking of the upgrading of the Boracay Airport, ongoing construction of the Tarlac-Pangasinan-La Union Expressway (TPLEX) and initiation of the MRT-7 project. Among its recent acquisitions are stakes in the firm operating the South Luzon Expressway and Skyway system.
Petron likewise completed the acquisition of 65 percent of Esso Malaysia Berhad and 100 percent of ExxonMobil Malaysia Sdn Bhd and Exxon Mobil Borneo Sdn Bhd.