SMC profit soared by 66% in H1 to P 33.5B, boosted by F&B, infra units
The first-half earnings of conglomerate San Miguel Corp. soared by 66 percent to P33.5 billion on the strong performance of its food and beverage and infrastructure segments.
The company led by billionaire Ramon Ang on Monday said revenues expanded by 15 percent to P789 billion.
Operating income likewise jumped by 22 percent to P85.1 billion on the improved margins of San Miguel Global Power Holdings Corp. (SMGP) and reduced raw material costs in San Miguel Food and Beverage Inc. (SMFB).
“We expect this positive momentum to continue throughout the year and deliver sustained value to all our stakeholders,” San Miguel chair and CEO Ang said in a statement.
SMFB booked a 6-percent increase in earnings to P20 billion, as growth in Ginebra San Miguel Inc. and San Miguel Foods tempered the flat earnings of San Miguel Brewery Inc.
Consolidated sales inched up by 4 percent to P192.9 billion.
Revenues of San Miguel Brewery stayed at P75.1 billion, with the company expecting a rebound in the second half through “targeted sales initiatives and increased focus on specific channels.”
San Miguel Foods saw a 3-percent growth in sales to P87.8 billion, while operating income doubled to P6.4 billion as revenues of prepared and packaged foods, as well as poultry sales, rose.
Ginebra likewise reported an 18-percent increase in sales to P30 billion as volume grew.
SMFB earlier said it wanted to grow the Ginebra brand in the Visayas and Mindanao.
The power sector under SMGP booked P98.9 billion in revenues, up by 17 percent, on improved margins from contracted volumes and contributions from battery energy storage systems.
Petron Corp. saw a 21-percent growth in revenues to P444.5 billion, although it recorded a 2-percent decline in net income to P6 billion as oil prices remained volatile.
Revenues of San Miguel Infrastructure inched up by 9 percent to P18.1 billion on a slight growth in tollways and average daily volumes.
Eagle Cement Corp., Northern Cement Corp. and Southern Concrete Industries Inc.—SMC’s cement businesses—saw consolidated revenues end at P19 billion, down by 6 percent on the back of lower average selling price of cement.
