SMC recurring income jumps 31% to P19.4 billion

MANILA, Philippines — Diversified conglomerate San Miguel Corp. (SMC) finished the first quarter strong, with recurring net income rising by nearly a third behind strong performance across all business units.

SMC said consolidated recurring net income in the period jumped 31 percent year-on-year to P19.4 billion, while revenues and operating income grew 20 percent and 19 percent, respectively.

The group’s beer business remained robust, with San Miguel Brewery Inc.’s net income improving 26 percent year-on-year to P5.7 billion behind strong volume growth driven mainly by increased consumption nationwide, marketing campaigns, and the implementation of trade and consumer promos.

Liquor unit Ginebra San Miguel Inc. reported a net income of P255 million, a 97 percent year-on-year increase, driven by a 20 percent growth in sales volume.

Oil refiner Petron Corp.’s net income improved four percent to P5.8 billion, fueled by strong combined domestic sales volume and improved operating efficiencies at both its Philippine and Malaysian operations. 

San Miguel Yamamura Packaging Group posted total sales revenues P8.6 billion on account of higher sales of glass, plastics and flexibles, and continuous growth in its Australia operations, pushing the packaging business’ operating income to P793.6 million.

San Miguel Pure Foods Co. Inc., now officially named San Miguel Food and Beverage Inc., recorded a seven percent decline in net income to P1.4 billion due to foreign exchange losses caused by the peso depreciation against the US dollar along with mark-to-market losses from raw material imports.