Diversified conglomerate San Miguel Corp. (SMC) nearly grew its net income by five times to P43.4 billion in the first quarter of the year from P8.9 billion a year earlier boosted by one-time gains from the partial sale of power assets and foreign exchange gains.
Excluding these non-recurring items, core net income expanded 31 percent to P19 billion on robust performance in most of its core businesses.
SMC said in a statement first quarter consolidated revenues declined 8 percent to P360.9 billion, mainly due to weaker crude prices affecting the fuel and oil segment, and lower contributions from the power business following the de-consolidation of the Ilijan power plant.
Stronger sales from food, hard liquor, and infrastructure units helped offset the decline.
Operating income went up 13 percent to P45.6 billion, supported by margin expansion across the power, food and beverage, and infrastructure segments.
“We had a good start to the year. Despite some challenges, our businesses remained resilient and continued to perform well. We will keep moving forward, grow responsibly, and make sure more Filipinos benefit from the progress we are making,” said SMC chairman and chief executive Ramon Ang.
San Miguel Food and Beverage, Inc. (SMFB) reported consolidated net income of P11.6 billion, up increased 16 percent from a year ago level while revenues climbed 4 percent to ₱98.9 billion.
San Miguel Foods’ revenues reached P46.3 billion, higher by 8 percent on strong poultry sales and steady demand for processed meats and dairy. Net income grew 83 percent to P3 billion.
San Miguel Brewery reported P36.3 billion in sales, with net income inching up 1 percent to P6.6 billion. Ginebra San Miguel generated P16.3 billion in revenues, also up 8 percent, while net income grew 11 percent to P2.1 billion.
On the other hand, San Miguel Global Power Holdings Inc. posted P42.5 billion in revenues, down 4 percent year-on-year due to the de-consolidation of the Ilijan power plant.
Operating income rose 21 percent to P10.7 billion. Reported net income reached P26.4 billion, including a P21.9 billion gain from the asset sale.
SMC Infrastructure reported a 7 percent increase in first-quarter revenues, driven by the continued growth of its toll road operations.
The conglomerate cement businesses, which include Eagle Cement, Northern Cement, and Southern Concrete Industries, reported consolidated revenues of P8.9 billion, down 4 percent year-on-year due to lower average selling prices amid heightened competition from imports and soft demand.
Sales volume however inched up by 1 percent.
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