Conglomerate San Miguel Corp. expects revenues to climb 14 percent in 2018 to P927 billion from the projected sales of P815 billion this year, a source said Tuesday.
“All of San Miguel’s subsidiaries are performing well, namely Purefoods, Ginebra, Petron, even power,” the source said.
The source said San Miguel’s financial performance would continue to improve next year as income from operations was expected to grow 18 percent to P125 billion from the forecasted P106 billion in 2017.
“All of San Miguel’s organic businesses have stabilized,” he said.
The source said earnings before interest, taxes, depreciation and appreciation were seen to go up to P166 billion in 2018 from the expected P146 billion this year.
San Miguel’s revenues rose 20 percent in the first nine months ending September 2017 to P597 billion, on higher sales by core food, beverage and packaging businesses.
Consolidated recurring net income, excluding the effect of foreign exchange transactions and the one-time gain from the sale of its telecommunications business, reached P43.8 billion in the nine-month period, or 21 percent higher than P36.3 billion a year earlier.
Consolidated operating income reached P82.8 billion, up by 13 percent from a year ago, while consolidated Ebitda rose 13 percent to P108.8 billion.
San Miguel earlier announced a plan to consolidate all traditional food and beverage businesses under a holding company through a share swap that was expected to result in significant synergies and unlock the value of its units.
Combined revenues of the consolidated units–San Miguel Brewery, Ginebra San Miguel and San Miguel Purefoods –hit P180 billion, up 11 percent, making up a significant 30-percent of SMC’s total revenues.
San Miguel Yamamura Packaging Group’s revenues and operating income both grew 13 percent to P22.4 billion and P2.2 billion, respectively on higher sales by plastics and metal businesses and the continued growth of Australian operations.
SMC Global Power’s revenues amounted to P62.1 billion, or 2 percent higher than last year, brought about by higher average realization and spot market prices.
Petron Corp., the oil unit, continued to deliver outstanding results, posting a profit of P11.8 billion, up 58 percent from last year, led by the continued focus on high-value segments and strong sales volumes in the Philippines and Malaysia.
Consolidated revenues rose 27 percent to P313.5 billion, while operating income grew 31 percent to P22.1 billion.