Mandaluyong—(PHStocks)—San Miguel Corp. (PSE: SMC) reported strong revenues and earnings for the first nine months of the year on the back of a 12% growth in its new businesses, coupled with a healthy 5% growth in its core beer and food businesses.
Consolidated revenues from January to September were up 10% to PhP599 billion. Net income rose by 31% to PhP23.2 billion.
Meanwhile, operating income jumped by 2% to PhP46.7 billion on improvements in the new businesses as well as San Miguel Pure Foods Co. Inc. (PSE: PF) and Ginebra San Miguel Inc. (PSE: GSMI), which helped offset a weaker third quarter for Petron Corp. (PSE: PCOR), which had to weather volatility in crude oil prices.
Consolidated recurring EBITDA improved 8% to PhP67.2 billion.
“We were able to build on the gains we made in the first semester. While adverse oil and fuel prices had an impact on Petron, we were able to ride out much of the volatility. This goes to show that our current portfolio of businesses is largely resilient to external stresses that could otherwise greatly impact our financial result,” said SMC president and COO Ramon S. Ang.
San Miguel Brewery Inc.’s consolidated sales volume reached 153 million cases, up 3% from the same period last year.
Consolidated revenues grew 5% to PhP56.3 billion, while operating income reached PhP15.3 billion. Beer International’s operations in Hong Kong, South China, also continued to perform strongly, as did its export business.
Ginebra San Miguel posted year-to-date sales volume of 15 million cases, a 2% improvement from last year on strong volumes for flagship Ginebra San Miguel.
As a result, revenues improved 7% to PhP10.6 billion. Operating income was at PhP124 million, a turnaround of nearly a billion pesos from losses last year.
San Miguel Pure Foods meanwhile reported consolidated revenues amounting to PhP74.4 billion, up 4%, as its agro-industrial, flour milling, and dairy businesses delivered strong results.
Operating income grew 18% to PhP4.3 billion, despite the adverse effects of typhoon Glenda and the Manila port congestion.
San Miguel Yamamura Packaging Corp. reported flat revenues of PhP17.3 billion, even as higher volume sales from paper and PET products and its Malaysia operations offset a slowdown in demand for glass. Operating income, on the other hand, improved 6% to PhP1.6 billion on improved efficiencies and lower fixed costs.
Petron’s consolidated revenues reached about PhP380 billion, a 13% improvement, as combined volume sales reached 64.7 million barrels, a 7% increase. This was driven mainly by an 11% growth in total sales volumes for the Philippine market, which was at 38.3 million barrels. Malaysian operations contributed 26.3 million barrels, a 2% improvement.
Operating income declined by 27% to PhP6.9 billion as a sharp drop in the benchmark Dubai crude oil in the third quarter resulted in high-priced inventories being sold at much lower prices. Active hedging strategies helped mitigate inventory losses.
SMC Global Power reported higher consolidated off-take volume and improved revenues, on the back of increased bilateral volumes and higher average bilateral and WESM prices. Operating income was also up, as revenues improved.
San Miguel also reported that its ongoing infrastructure projects, namely the Tarlac-Pangasinan-La Union Expressway (TPLEX), the NAIA Expressway, Skyway Stage 3, the Star Tollway upgrade, and Boracay Airport project, are all on track and progressing as scheduled.