San Miguel Corp. posted strong 2017 results fueled by higher contributions from subsidiary Petron Corp.’s Philippines, Malaysia, and petrochemicals operations, along with its food and beverage businesses.
Consolidated revenues reached P826 billion, up 21% from 2016, as sales across all its businesses continued to grow.
Consolidated operating income amounted to P111 billion, 11% 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.
Consolidated EBITDA rose 13% to P147.3 billion.
Beer
San Miguel Brewery Inc.’s revenues rose 17% to P113.3 billion. Volumes reached 260 million cases, up 13% 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% and 17% higher than 2016.
Liquor
Ginebra San Miguel Inc. reported strong results for the fourth straight year, generating sales volumes of 27.7 million cases for the year, a 10% 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% increase from 2016, while operating income surged 43% to P1.4 billion. As a result, net income rose 67% to P602 million.
Food
San Miguel Pure Foods Co. Inc. recorded another growth year in 2017, posting consolidated revenues of P117.4 million, 5% higher than the previous year, on the back of the strong performance of its Poultry and 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% to P9.9 billion. As a result, net income ended at P6.9 billion, 16% higher than 2016.
Packaging
San Miguel Yamamura Packaging Group reported P32.1 billion in revenues, a 17% increase over the previous year, as it continued to broaden its presence in the region in 2017. This was driven mainly by continued growth in its Australian operations and higher sales from its Glass, Metal and Plastics businesses. Operating income grew by 16% to P3 billion.
Power
SMC Global Power Holdings Corp.’s consolidated revenues grew 6% to P82.8 billion, the result of higher realization prices from both bilateral and spot sales.
Operating income ended 9% 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 Philippines, Malaysia, and Petrochem operations
Petron Corp. posted a phenomenal year, registering net income of P14.1 billion, 30% 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% from 2016’s P343.8 billion, and operating income was up 16% to P27.6 billion. n
