March 15, 2019
San Miguel Corp. (SMC) saw recurring profit grow by just 1 percent last year even as revenues breached the P1-trillion mark.
In a statement on Thursday, the Ramon Ang-led conglomerate said 2018 revenues jumped 24 percent to P1.02 trillion from the previous year’s P828 million.
Consolidated recurring net income, however, came in at just P55.18 billion from the year-earlier P54.65 billion. San Miguel said growth had been tempered by sharp oil price drops during the fourth quarter, which resulted in inventory losses for its fuel and petrochemical businesses, and foreign exchange losses.
On a stand-alone basis, San Miguel Food and Beverage Inc. (SMFB) saw an 8-percent increase in net profit to P30.5 billion from P28.2 billion on account of higher volumes and revenues, which at P286 billion were higher by 14 percent year on year.
SMFB’s beer unit San Miguel Brewery Inc. saw net income rise by 15 percent to P23.8 billion from P20.7 billion. Revenues grew 14 percent to P129.2 billion from P113.2 billion.
Liquor subsidiary Ginebra San Miguel Inc., meanwhile, posted a 75-percent climb in net income to P1.05 billion from only P602 million in 2017, while revenues increased by 19 percent to P24.8 billion.
Only San Miguel Pure Foods Inc. out of SMFB’ businesses posted a profit drop: P5.88 billion from P6.9 billion a year earlier despite a 13-percent increase in revenues to P132 billion.
SMC did not explain the decline but said Pure Foods’ revenue growth was driven by increased volumes and better selling prices.
Packaging arm San Miguel Yamamura Packaging Corp., meanwhile, posted 2018 revenues of P37.3 billion, higher by 16 percent than the P32.1 billion registered in 2017.
Power subsidiary SMC Global Power Holdings Corp. was said to have registered a 45-percent revenue increase to P120 billion on the back of additional power generation from plants.
Petron Corp., the conglomerate’s petroleum unit, reported a 50-percent plunge in net profit to P7.07 billion from 2017’s P14.09 billion, mainly due to inventory losses incurred in November and December.
SMC noted that global oil supplies increased during the fourth quarter of 2018, causing a nine-week fall in international oil prices.
SMC Infrastructure, meanwhile, saw revenues of P24.5 billion, up 9 percent from last year due to growth in vehicular volumes on all operating toll roads.
SMC shares finished down 40 centavos or 0.23 percent to P172 each amid a 0.20-percent drop for the benchmark Philippine Stock Exchange index.
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