SMC income jumps 80% to P52.2 B

MANILA, Philippines -  San Miguel Corp. reported a P52.2 billion net income in 2016, up 80 percent on higher revenues and better margins across its major businesses.

Excluding foreign exchange losses of P8.9 billion, consolidated income reached P61.2 billion, SMC said in a disclosure to the local bourse yesterday.

Revenue grew two percent to P685 billion. The growth would have been bigger if not for the low fuel prices of Petron Corp.

Consolidated operating income rose 24 percent to P99.7 billion, with most of its businesses delivering double-digit income growth.

SMC, which is led by its president and COO Ramon Ang, is engaged in the beer, liquor, food, infrastructure, power, packaging and oil businesses.

San Miguel Brewery posted a net income of P17.7 billion, 31 percent higher than the previous year as revenues rose 18 percent to P97.2 billion. In terms of volume, this was up 12 percent to 230.4 million cases, pushing operating income by 20 percent to P27.2 billion.

Ginebra San Miguel Inc. registered P361 million in net earnings, a turnaround from the P386 million loss in 2015 amid higher volumes. It sold 25.2 million cases, up nine percent year on year.

Revenues went up 12 percent to P18.6 billion while operating income jumped 58 percent to P978 million.

The food business under San Miguel Pure Foods Co. Inc. sustained its growth momentum with net earnings expanding 26 percent to P6 billion as consolidated revenues went up four percent to P111.6 billion on robust volumes and favorable selling prices for chicken and value-added products.

“This partly offset the drop in flour prices as global grain stocks pile up. With improved margins, operating income grew 17 percent to P8.9 billion,” SMC said.

San Miguel Packaging Group reported a 10 percent increase in operating income to P2.6 billion as sales revenues rose nine percent to P27.4 billion on the back of strong sales from its glass and plastics businesses and higher contributions from its Australian businesses.

SMC Global Power, meanwhile, registered P78 billion in revenues. Operating income increased 13 percent to P26.7 billion.

The infrastructure business, through San Miguel Holdings Corp., also delivered higher contributions, with income from operations rising six percent to P9.8 billion. Revenues increased 13 percent to P19.9 billion, mainly driven by steady growth in traffic volume for all SMC- operated toll roads - SLEX, Skyway 1 and 2, STAR and TPLEX.