Conglomerate San Miguel Corp. (SMC) saw its core net income increase 9 percent during the first half of the year to P36.7 billion, driven by broad-based gains across its food, beverage, infrastructure and power businesses.
Reported net income, which includes extraordinary gains, surged 391 percent to P66.8 billion from P13.6 billion recorded in the same period last year.
The growth was boosted by one-time gains from a valuation uplift on its 33 percent residual investment in the Ilijan power facility and Excellent Energy Resources Inc. (EERI) facilities, as well as foreign exchange gains.
First-half revenues, however, declined 9 percent to P718.2 billion, mainly due to the deconsolidation of the Ilijan and EERI assets in the power unit and softer crude prices impacting the fuel and oil segment. These were partly offset by stronger results from the food, spirits and infrastructure businesses.
Operating income rose 3 percent to P87.7 billion, led by the food, spirits and infrastructure units.
“Our first-half results reflect the resilience and adaptability of our diverse portfolio,” said SMC chairman and chief executive Ramon Ang. “By staying focused on efficiency, discipline and strategic priorities, we have sustained our growth momentum and continued to contribute to our country’s progress.”
Net income of San Miguel Food and Beverage Inc. (SMFB) delivered a 15 percent increase to P23 billion as sales rose 4 percent to P201.2 billion.
San Miguel Global Power’s revenues dropped 19 percent to P80.1 billion. However, core income rose to P12.6 billion, aided by new power plant contributions and higher earnings from battery energy storage systems (BESS).
Petron Corp. recorded P5.3 billion in net income, with revenues down 13 percent to P386.4 billion, reflecting lower global oil prices and decreased trading volumes in Singapore. Domestic sales volumes improved, helping cushion the decline.
SMC’s cement business recorded a 6 percent decline in revenues to P17.8 billion due to weaker demand and increased competition from imports.
Operating income declined 12 percent to P3.5 billion due to heightened competition amid the continued influx of imported cement, even as market demand also softened.
SMC Infrastructure booked a 7 percent increase in toll road revenues to P19.9 billion, driven by higher traffic volumes. Operating income increased 13 percent to P11.1 billion, supported by cost efficiency.
