SMC earnings surge to P60B on food, beverage

Buoyed by strong growth in food, beverage, and infrastructure despite softer fuel and power revenues, diversified conglomerate San Miguel Corp. (SMC) reported a 54 percent surge in core net income to P60.3 billion for the first nine months.

The company said Wednesday its operating income climbed 13 percent to P137.4 billion, while consolidated EBITDA rose 16 percent to P194.3 billion.

Total revenues reached P1.1 trillion, slightly lower than a year ago due to softer crude prices and the deconsolidation of select power assets.

“Despite factors outside our control, we delivered strong results and continued making steady progress on our major projects,” SMC Chairman and CEO Ramon S. Ang said, adding that the group is preparing for higher consumer activity in the final quarter as holiday demand picks up.

San Miguel Food and Beverage, Inc. led with revenues of P302.9 billion, up 4 percent, driven by Ginebra San Miguel and San Miguel Foods. Operating income rose 12 percent to P44.7 billion, while EBITDA grew 13 percent to P58.4 billion.

San Miguel Foods posted revenues of P143.5 billion, up 7 percent, fueled by dairy, coffee, poultry, and prepared foods. Operating income jumped 32 percent to P12.9 billion, with EBITDA up 27 percent to P20.0 billion.

San Miguel Brewery held steady at P110.7 billion in revenues, with operating income rising 2 percent to P23.9 billion and EBITDA up 4 percent to P30.0 billion. Ginebra San Miguel continued its momentum, with revenues up 7 percent to P48.7 billion and both operating income and EBITDA rising 19 percent to P7.5 billion and P8.4 billion, respectively.

In energy and petroleum, Petron Corp. sold 84.7 million barrels, up 3 percent, while revenues fell 10 percent to P594.9 billion due to lower crude prices. Operating income rose 20 percent to P26.6 billion, net income jumped 37 percent to P9.7 billion, and EBITDA grew 15 percent to P37.5 billion.

SMC Global Power Holdings Corp. posted revenues of P118.8 billion, down 23 percent, but operating income rose 4 percent to P34.8 billion thanks to its battery energy storage system (BESS) business.

SMC Infrastructure reported a 7 percent increase in revenues to P29.6 billion, boosted by higher traffic on all toll roads, with operating income up 12 percent to P16.7 billion.

However, the company’s cement business faced a 6 percent drop in revenues to P25.5 billion amid cheaper imports and weaker volumes, with operating income at P5.1 billion.