SMC recurring income up 11 percent to P55 billion in 2017

March 15, 2018

San Miguel Corporation posted strong 2017 results fueled by higher contributions from subsidiary Petron Corporation’s Philippines, Malaysia, and petrochemicals operations, along with its food and beverage businesses.

Consolidated revenues reached P826 billion, up 21 percent from 2016, as sales across all its businesses continued to grow, a company statement said Thursday.

Consolidated operating income amounted to P111 billion, 11 percent higher than the P99.7 billion reported in the previous year.

Consolidated recurring net income ended at P54.7 billion versus P49.4 billion in 2016. This excludes the effect of foreign exchange translations and a one-time gain from the sale of its telco business last year.

San Miguel Brewery Inc.’s revenues rose 17 percent to P113.3 billion.  Volumes reached 260 million cases, up 13 percent from the previous year, driven mainly by favorable economic conditions and SMB’s strong marketing and integrated sales initiatives.

With the strong performance of its domestic operations and contributions from its international operations, operating income and net income reached P31.2 billion and P20.7 billion, 15 percent and 17 percent higher than 2016.

Ginebra San Miguel Inc. generated sales volumes of 27.7 million cases for the year, a 10 percent increase over 2016. Flagship brand Ginebra San Miguel and Vino Kulafu both continued to post double digit growth.

Revenues reached P20.9 billion, a 12 percent increase from 2016, while operating income surged 43 percent to P1.4 billion. As a result, net income rose 67 percent to P602 million.

San Miguel Pure Foods Co. Inc. recorded another growth year in 2017, posting consolidated revenues of P117.4 billion, five percent higher than the previous year, on the back of the strong performance of its poultry & fresh meats and value-added meats businesses.

With favorable selling prices, a better sales mix, and lower costs for some major raw materials, operating income rose 11 percent to P9.9 billion.

As a result, net income ended at P6.9 billion, 16 perfcent higher than 2016.

SMC Global Power Holdings Corp.'s consolidated revenues grew  six percent to P82.8 billion, the result of higher realization prices from both bilateral and spot sales.

Operating Income ended nine percent lower than the previous year at P24.3 billion, brought about by higher costs, lower bilateral volumes from Ilijan, and the sales of the Limay Cogen plant in 2016. However, with lower unrealized forex losses, net income significantly increased to P8.2 billion.

Petron Corporation registered net income of P14.1 billion, 30 percent higher the P10.8 billion in the previous year, as a result of its continued focus on high-value segments and strong sales volumes from both its Philippines and Malaysian operations.

Consolidated revenues reached P434.6 billion, up 26 percent from 2016’s P343.8 billion, and operating income was up 16 percent to P27.6 billion. DMS