SMC net income grew 80 percent to P52 billion in 2016

March 16, 2017

San Miguel Corp. on Thursday reported a P52 billion net income in 2016, an 80 percent increase over 2015, driven by higher revenues and better margins across its major businesses. Excluding foreign exchange losses of P8.9 billion, consolidated income reached P61.2 billion. Consolidated operating income rose to P99.7 billion, 24 percent higher than the P80.5 billion reported in 2015, with most of its businesses delivering double-digit income growth. Revenue grew by only two percent to P685 billion due to low fuel prices of Petron. San Miguel Brewery delivered a record performance for 2016, with revenues amounting to P97.2 billion, 18 percent higher than 2015.  Total volumes were up 12 percent to 230.4 million cases, pushing operating income to P27.2 billion, up 20 percent from last year. Domestic operations were bolstered by strong marketing campaigns and favorable economic conditions. Its international operations also posted significant improvements.  Net income reached P17.7 billion, 31 percent higher than the previous year. Ginebra San Miguel Inc. recorded higher volumes for the third straight year, reaching 25.2 million cases, nine percent higher than 2015. Revenues reached P18.6 billion, 12 percent higher than last year.  Operating income jumped 58 percent to P978 million while net income amounted to P361 million, a turnaround from last year's P386 million loss. San Miguel Pure Foods Co., Inc. sustained its growth momentum throughout the year with consolidated revenues reaching P111.6 billion, four percent higher than the previous year, driven by robust volumes and favorable selling prices for chicken and value-added products. This partly offset the drop in flour prices as global grain stocks pile up. With improved margins, operating income grew 17 percent to P8.9 billion.  Net income amounted to P6.0 billion, 26 percent higher than 2015. San Miguel Packaging Group's sales revenues reached P27.4 billion, nine percent higher than 2015 on the back of strong sales from its glass and plastics businesses and higher contributions from its Australian businesses. Operating income amounted to P2.6 billion, a 10 percent increase. SMC Global Power reported a five percentincrease in offtake volume to 17,355 gwh, with both the Sual and Ilijan power plants posting higher bilateral volumes. Revenues amounted to P78 billion. With lower generation costs and an improvement in generation volume  from both Sual and Ilijan, operating income amounted to P26.7 billion, 13% higher than last year. SMC’s infrastructure business, through San Miguel Holdings Corp., also delivered higher contributions, with revenues increasing 13 percent to P19.9 billion. This was mainly driven by steady growth in traffic volume for all SMC-operated toll roads - SLEX, Skyway 1 and 2, STAR and TPLEX. Operating income amounted to P9.8 billion, up six percent from 2015. DMS