SMC’s first-half income jumps to P33.5B on strong segment performance
ANG-LED conglomerate San Miguel Corp. (SMC) grew its first-half net income by 66% to P33.5 billion, carried by higher profits across its business segments.
First-half consolidated revenue rose by 15% to P789 billion, led by business units Petron Corp., San Miguel Global Power Holdings Corp. (SMGP), San Miguel Infrastructure, San Miguel Food and Beverage, Inc. (SMFB), and Ginebra San Miguel, Inc. (GSMI), SMC said in an e-mailed statement on Monday.
Operating income increased by 22% to P85.1 billion on higher margins in the power business and lower raw material costs in the food business.
“Our strong first-semester performance shows the resilience of our businesses even in a challenging market. We expect this positive momentum to continue throughout the year and deliver sustained value to all our stakeholders,” SMC Chairman and Chief Executive Officer Ramon S. Ang said.
On the food and beverage business, SMFB grew its first-half net income by 6% to P20 billion. Consolidated sales increased by 4% to P192.9 billion, while earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 5% to P33.9 billion.
San Miguel Brewery, Inc. saw a 1% increase in consolidated revenue to P75.1 billion on higher sales volume, while GSMI recorded an 18% increase in sales to P30 billion.
San Miguel Foods had a 3% sales increase to P87.8 billion, led by the double-digit revenue growth in prepared and packaged foods along with “resilient” poultry sales.
On the power segment, SMGP grew its first-half operating income by 56% to almost P23 billion, while EBITDA rose by 45% to P30.1 billion on improved margins from contracted volumes and contribution of higher-margin ancillary service from battery energy storage systems.
First-half revenue rose by 17% to P98.9 billion despite a lower average realization price caused by an overall decline in fuel prices.
On the fuel and oil segment, Petron recorded a 2% drop in first-half net income to P6 billion, while operating income rose by 8% to P17.3 billion.
Consolidated revenue increased by 21% to P444.5 billion from P367 billion last year as the company continued to register strong volumes in the Philippines and Malaysia, reaching 69.1 million barrels in the first six months, up 20% from the 57.6 million barrels sold last year.
On the infrastructure business, San Miguel Infrastructure saw a 9% increase in revenue growth to P18.1 billion, led by the 4% growth in combined tollways daily average volumes, which ended at 1.034 million vehicles. Operating income rose by 8% to P9.7 billion, while EBITDA increased by 9% to P14.7 billion.
On the cement business, Eagle Cement Corp., Northern Cement Corp., and Southern Concrete Industries, Inc. saw a 6% decline in first-half consolidated revenue to P19 billion.
Operating income rose by 31% to about P4 billion on the back of cost reductions and operating efficiencies, while EBITDA increased by 18% to P5.4 billion.
“Lower average selling price in response to the influx of imported traded cement weighed on its topline. However, the decline has been mitigated in part by stronger second-quarter sales volume,” SMC said.
On Monday, SMC shares dropped by 1.40% or P1.40 to P98.50 per share. — Revin Mikhael D. Ochave