San Miguel Corp. (SMC) reported a six percent growth in net income in the first half of the year.
In a presentation before analysts, SMC reported a net income of P27.6 billion during the period from only P26 billion a year ago.
Net sales grew to P499 billion, up 27 percent from P393.4 billion while recurring net income rose 29 percent to P35.536 billion from P27.6 billion a year ago.
Growth was driven by higher volume and favorable selling prices.
All major businesses — food and beverage, power, fuel and oil, and infrastructure sustained their respective growth momentum, officials said.
SMC president and chief operating officer Ramon Ang said increased business focus and hard work boosted growth during the period.
“Increased business focus and a lot of hard work were key to our group’s stellar performance. We’re encouraged by the results we’ve had so far, and are very hopeful that this momentum will carry through for the rest of the year,” Ang said.
By segment, San Miguel Food and Beverage Inc. reported a net income of P15.4 billion during the period, up 20 percent on net sales of P137.4 billion, which was 15 percent higher than P119.1 billion in 2017.
San Miguel Brewery Inc. posted revenues of P62.5 billion, up 18 percent during the period, translating to an operating income and net income of P17.3 billion and P11.8 billion, up 23 percent and 26 percent from last year respectively.
Ginebra San Miguel Inc. likewise recorded a strong first semester performance posting a net income of P506 million, almost double from last year.
Core brands Ginebra San Miguel and Vino Kulafu continued to drive growth momentum, benefitting from new thematic campaigns launched early this year and ongoing consumer promotions.
Revenues grew 19 percent to P12 billion while operating income reached P862 million. This was 57 percent higher than previous year.
On the other hand, the Food Group’s net income amounted to P3.1 billion, down two percent. But consolidated revenues for the first half of the year reached P62.9 billion, 12.4 percent higher than last year mainly driven by the strong performance of Agro-industrial and Branded Value-Added businesses.
San Miguel Yamamura Packaging Group’s total sales revenues reached P17.6 billion during the period, 25 percent higher than a year ago while its operating income amounted to P1.6 billion or 17 percent higher than in the same period last year.
The power business, SMC Global Power Holdings Corp.’s operating income reached P17 billion, 28 percent higher than the previous year at P13.3 billion.
Petron Corp, the oil refiner, also sustained its strong performance with consolidated net income of P9.5 billion, 16 percent higher than the P8.2 billion in the same period last year.
Consolidated revenues grew 32 percent to P273.5 billion, compared to last year’s P207 billion, mainly driven by sustained sales volumes of its Philippine and Malaysian operations and higher prices of crude oil and finished products.