Conglomerate San Miguel Corp. said Thursday recurring net income rose 1 percent in 2018 to P55.17 billion from P54.65 billion in 2017, as the strong performance of food and beverage, power and infrastructure businesses was offset by a steep decline in the contribution of oil refinery business.
San Miguel said in a statement consolidated revenues grew 24 percent in 2018 to a record P1.024 trillion from P826 million a year ago.
Income from operations which improved 5 percent year-on-year to P117.08 billion was tempered by the sharp decline in crude prices resulting in inventory losses for its fuel and petrochemical business in the fourth quarter.
This was compounded by foreign exchanges losses for the year.
The conglomerate’s food and beverage business under San Miguel Food and Beverage Inc. registered a net income of P30.5 billion in 2018, up 8 percent from P28.22 billion in 2017.
SMFB’s net sales climbed 14 percent to P286.4 billion, boosted by the strong revenues from its liquor business.
San Miguel Brewery Inc., San Miguel Pure Foods and Ginebra San Miguel Inc. posted double-digit revenue growth.
“Despite the high inflationary environment in the past year, we are pleased with the performance of our food and beverage businesses which all delivered strong revenue growth. This is proof that our brands continue to resonate strongly with consumers,” San Miguel president and chief operating officer Ramon Ang said.
San Miguel Packaging Group also posted a 16-percent hike in net sales to P37.3 billion as income for operations rose 11 percent to P3.3 billion.
The group’s power generation unit SMC Global Power Holdings Corp. saw net sales jump 45 percent to P120.1 billion.
Petron Corp. posted a 50-percent decline in net income to P7.07 billion from P14.08 billion in 2017 on shrinking crude prices. Petron’s net sales, however, rose 28 percent to P557.3 billion. Jenniffer B. Austria
Infrastructure unit SMC Infrastructure reported net sales of P24.53 billion, up 9 percent from a year ago.
The share price of San Miguel fell 0.3 percent to P172 Thursday.