SMC first half core profit up 9% to P36.7B
One-time gains from the deconsolidation of its assets resulted in the first-semester earnings of San Miguel Corp. (SMC) zooming by nearly fivefold to P66.8 billion.
SMC currently has a 33-percent residual investment in the 1,200-megawatt Ilijan gas-fired power plant in Batangas province. Its valuation increased during the period, resulting in higher earnings.
The company likewise benefited from the facilities of Excellent Energy Resources Inc. (Eeri) that were recently deconsolidated from its financial statements.
Excluding these nonrecurring items, the conglomerate’s core income rose by 9 percent to P36.7 billion, SMC said in a statement on Tuesday.
Meanwhile, lower contributions from the power group after the deconsolidation of Eeri resulted in a 9-percent slip in revenues to P718.2 billion.
“Our first-half results reflect the adaptability of our diverse portfolio,” SMC chair and CEO Ramon Ang said.
“By staying focused on efficiency, discipline and strategic priorities, we have sustained our growth momentum and continued to contribute to our country’s progress,” Ang added.
Broken down, San Miguel Food and Beverage Inc. grew its net income during the period by 15 percent to P23 billion due to higher gains from its subsidiaries. Its revenues rose by 4 percent to P201.2 billion.
San Miguel Foods, whose products include chicken, canned meats, spreads and coffee, booked a 53-percent surge in its bottom line to P6 billion.
Ginebra San Miguel likewise logged a 16-percent rise in net income to P4.2 billion on better prices and stable volumes.
San Miguel Brewery’s net income inched up by 3 percent to P13 billion due to lower revenues, although international sales offset this.
On the power side, San Miguel Global Power saw its top line fall by 19 percent to P80.1 billion because of Eeri’s deconsolidation.
According to SMC, contributions from new power facilities and battery energy storage systems helped cushion the impact.
Citing persistent market challenges, Petron Corp. booked a 12-percent decline in its net income to P5.3 billion.
While combined sales from the Philippines and Malaysia improved by 3 percent to P56.2 billion, revenues still slid by 13 percent to P386.4 billion on the back of lower international oil prices and volumes from trading operations in Singapore.
Meanwhile, SMC’s cement business under Eagle Cement, Northern Cement and Southern Concrete Industries ended the period with P17.8 billion in sales, down by 6 percent because of lower volumes and weaker average selling prices.
SMC Infrastructure, on the other hand, grew its revenues by 7 percent to P19.9 billion following an increase in average daily traffic at toll roads.
