SMC 2015 Operating Income Reaches PhP78.7 Billion

Mandaluyong—(PHStocks)—San Miguel Corp. (PSE: SMC) reported better-than-expected 2015 results, despite a challenging year characterized by uncertainties in the global economic environment.

SMC reported a 41% surge in operating income to PhP78.7 billion, driven mainly by the robust performance of its foods, beverage, and packaging  units along with higher margins from Petron Corp. (PSE: PCOR), the results of stabilizing crude oil price environment, although at lower level during the last half of 2015.

However, consolidated sales revenues declined by 13% to PhP674 billion due to the steep drop in crude oil prices from $111 per barrel in 2014  to $31 per barrel towards the end of 2015, coupled with scheduled major maintenance shutdown of the Malampaya gas facilities and the downtime resulting from the scheduled major maintenance of the Ilijian and Sual power plant.

Consolidated net income, before foreign exchange translation, reached PhP38.2 billion, up 26% from 2014. EBITDA was up 23% at PhP108.6 billion.

San Miguel Brewery Inc.

San Miguel Brewery Inc. posted consolidated revenues of PhP82.4 billion, 4% higher than in 2014, as domestic operations registered volume and revenue growth of 3% and 9%, respectively. Consolidated operating income amounted to PhP22.6 billion, up 2.5%, while net income reached PhP13.5 billion. EBITDA amounted to PhP25.7 billion.

Ginebra San Miguel Inc.

Ginebra San Miguel Inc. sustained a robust 2015 performance. Volumes improved 4% to 23 million cases, with volumes for flagship Ginebra San Miguel up by 5%. Consolidated revenues grew 7% to PhP16.6 billion while operating income surged 73% to PhP621 million. EBITDA amounted to PhP1.3 billion.

San Miguel Pure Foods Company Inc.

San Miguel Purefoods Company Inc. (PSE: PF) posted another year of solid growth, with revenues rising 4% to PhP107 billion. Operating income Also rose 18% to PhP7.6 billion, on the strong performance of its Branded and Feeds Businesses. With lower interest expenses, net income jumped 24% to PhP4.8 billlion. EBITDA amounted to PhP10.3 billion.

San Miguel Yamamura Packaging Corp.

San Miguel Yamamura Packaging Corp. grew its revenues 3% to PhP25.0 billion. Consolidated operating income grew 2% to PhP2.3 billion as a result of improved efficiencies and cost management. EBITDA amounted to PhP4.1 billion.

SMC Global Power Corp.

Power subsidiary SMC Power’s consolidated offtake volume declined 3% from the previous year to 16,558 GWH as the scheduled major maintenance of the Malampaya gas facility affected the output of the Ilijian facility. The major maintenance in the Ilijian and the Sual Power Plants also contributed to the decline. Consolidated  revenues reached PhP77.5 billion while operating income amounted to PhP23.7 billion while operating income amounted to PhP23.7 billion. EBITDA amounted PhP31.4 billion.

Petron Corp.

Petron posted a net income of PhP6.3 billion, more than double the previous year’s earnings, mainly driven by the surge in sales volume, better refining margins and effective risk management. All business segments in Petron’s Philippine and Malaysian operations contributed to volume growth. Revenues however declined 25% to Php360 million due to nearly 50% drop in oil prices. Despite weak oil prices in 2015, the differential between crude and finished products remained strong and the mix of higher value products improved. Consequently, operating income grew 138% to PhP18.1 billion. EBITDA amounted to PhP22.3 billion.

San Miguel Holdings Corp.

SMC’s infrastructure unit delivered a 19% increase in revenues to PhP13.2 billion and a 15% rise  in operating income to PhP8.5 billion, on a full year 2015 results. Following the consolidation of SLEX and Skyway 1 and 2 in early 2015, the business contributed PhP13.3 billion in revenues and phP7.3 billion in operating income to the SMC consolidated results. EBITDA amounted to PhP10.3 billion.

The company added that the Boracay Airport runway extension is now complete and a major portion of the NAIA Expressway will be completed by 2nd quarter this year. Ongoing projects – Skyway Stage 3 and TPLEX’s phase 3 are proceeding  as planned. Its MRT-7 project, on the other hand, has ready financing to fund construction, which could take about three-and-a-half years to complete, the company said.

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