Diversified conglomerate San Miguel Corp. said Thursday nine-month net income declined five percent to P39.69 billion from P41.9 billion year-on-year due to the weak performance of its fuel and food businesses.
San Miguel said in a statement nine-month revenues were flat at P758.6 billion despite higher volumes from the beer, spirits, power and infrastructure units.
Consolidated operating income fell nine percent to P88.7 billion.
Unit Petron Corp. continues to be weighed down by volatile global crude oil prices and weak refining margins, while the food business faced headwinds from rising raw material costs.
The net income of San Miguel Food and Beverage Inc. was flat at P22.9 billion, while consolidated revenues rose 10 percent to P226.4 billion, driven by strong revenue growth across the business segments.
“The continuous recovery seen in the poultry business during the third quarter in particular, along the steady growth of our beverage business have been very encouraging,”said San Miguel president and chief operating officer Ramon Ang.
SMC Global Power Holdings Corp. posted a 161-percent increase in nine-month income to P11.38 billion as net sales jumped 18 percent to P105.1 billion.
Consolidated off-take volume hit 21,581 gigawatt-hours during the nine-month period, 22 percent higher than in the same period in 2018. This was the result of higher bilateral sales volumes and improved operations at the Sual, Ilijan, and San Roque power plants, and the full nine-month operation of the Masinloc power plant.
Petron’s net profit, meanwhile, plunged 70 percent to P3.6 billion while consolidated revenue amounted to P381.7 billion, down nine percent on year.
San Miguel said Petron continued to reel from volatile movements in global crude oil prices, weak refining margins and a slowdown in demand. This was partially mitigated by volume increases in Petron’s Malaysia operations.
“We will continue to push for a level playing field in the industry where illicit trade persists. This level-playing field is what we hope will prevail throughout the country. We support government’s fuel-marking program and look forward to its implantation for all players,” Ang said.
“Oil smuggling robs government of much-needed taxes, and deprives consumers of quality fuel, which are not allowed to thrive,” he added.