San Miguel Posts Strong Results for First 9 Months

(PHStocks) – San Miguel Corp. (PSE: SMC) posted strong results for the first nine months of the year, buoyed by significant contributions from its fuel and power businesses as well as steady growth in its traditional food and beverage businesses.

San Miguel’s September-year-to-date consolidated sales revenue reached P393.4 billion, a 143% jump from last year’s level. Consolidated operating income amounted to P42.0 billion, a 112% improvement. Recurring net income rose 41% to P11.6 billion with reported net income of P11.9 billion.

Petron Corp. (PSE: PCOR) posted revenues of P202 billion, 19% higher than in the same period last year. This was due largely to an increase in exports and sales of higher-margin petrochemicals, which grew by 17% in volume. Income from operations reached P13.1 billion, up 47%, while net income reached P7.6 billion, up 42%.

San Miguel’s core businesses also posted significant gains. San Miguel Brewery Inc.’s (SMBI) September-year-to-date revenue rose 7% to P52.1 billion as volume sales reached 165.8 million cases, a 3% improvement. Operating income rose 9% to P14.7 billion, owing to higher volumes, managed fixed costs, and big improvements in Beer international’s operations.

The San Miguel Food Group meanwhile posted double-digit net revenue sales growth of 11% to P64.3 billion, brought about by better volumes and higher average selling prices. Operating income was at P4.3 billion, 2% higher than from the previous year.

San Miguel Yamamura Packaging, on the other hand, reported consolidated sales revenue of P17.7 billion for the first nine months, up 4% from the previous year. Operating income grew 8% to P1.6 billion.

Meanwhile, soft demand for liquor products continued to weigh down Ginebra San Miguel, which reported net revenue sales of P11.5 billion, down 31% from the previous year.

SMC chairman and chief executive officer Eduardo M. Cojuangco Jr. said that the company was also able to make significant strides in its diversification strategy. In August, SMC signed a sale and purchase agreement to acquire Exxon Mobil’s downstream business in Malaysia, which includes a 65% stake in Esso Malaysia Berhad, 100% of ExxonMobil Borneo Sdn Bhd, and ExxonMobil Malaysia SDN Bhd.

Preparations for the expansion of its Boracay Airport in Caticlan, Malay, Aklan, are also underway. The plan includes the extension of the runway, construction of a new and bigger terminal, and improvement of navigational aids. Construction of Phase 1 of the Tarlac-Pangasinan La Union Expressway (TPLEx) from Tarlac to Gerona is on track for completion and operation by the first quarter of 2012. The MRT-7 project, meanwhile, is under review by the relevant government agencies in preparation for a financial close.

“We expect good sales growth in the last quarter, and we have managed to build leadership positions in our new businesses where important trends are driving future growth. So while the economy still gives us reason to be cautious, we are confident that we can deliver on our commitments to our stakeholders,” Cojuangco said.

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