San Miguel first-half net income up 18%

Diversified conglomerate San Miguel Corp. (SMC) reported on Tuesday double-digit growth in its first-half net income, mainly on the back of its beer, spirits, infrastructure, and packaging units.

In an emailed statement, SMC said its net income rose 18% to P23.3 billion, while consolidated operating income climbed 5% to P69.9 billion. Consolidated revenues grew 5% to P69.9 billion.

"We’re greatly encouraged by the sustained growth we are seeing across most of our businesses. While there are challenges, we’re confident in the programs we have put in place to address them," SMC president and chief executive officer Ramon Ang said.

"We are also keeping our focus on executing on our projects, implementing our growth strategies, and providing our customers the high-quality service they expect from San Miguel," he added.

San Miguel Food and Beverage Inc. reported a 7% increase in its consolidated revenues to P184.6 billion, driven by better selling prices across its beer, spirits, and food divisions.

The unit’s consolidated operating income declined by 13% to P23.0 billion, with the food division hit by higher raw material prices. Net income for the period stood at P18.8 billion.

San Miguel Brewery Inc. (SMB) recorded a 26% growth in its consolidated net income to P13.5 billion, and Ginebra San Miguel Inc. was up 64% to P4.1 billion. San Miguel Foods recorded a consolidated net income of P1.7 billion.

SMC’s power unit San Miguel Global Power Holdings Corp. posted an 8% increase in its consolidated operating income to P14.8 billion, while its consolidated net income grew by more than quadruple to P5.9 billion.

Petron Corp. saw a 20% decline in its net income to P6.14 billion, while its consolidated operating income was at par versus the previous year at P16 billion amid softer refinery margins.

SMC Infrastructure saw a 50% increase in operating income to P9.0 billion as revenues jumped 23% to P16.6 billion, while Eagle Cement reported a P3.0 billion operating income versus P398 million the previous year.

The firm also has strategic partnerships with international companies such as Kirin Holdings Company Limited for beer, Hormel Foods International Corp. for processed meats, Nihon Yamamura Glass Company Ltd., and Fuso Machine & Mold Mfg. Co. Ltd. and Can Pack S.A. for packaging products; and Korea Water Resources Corp. for its power business.

Shares in SMC closed Tuesday at P103.40 apiece, up P0.3 or 0.29% from Monday’s finish of P103.10 per share. — VBL, GMA Integrated News