Diversified conglomerate San Miguel Corporation (SMC) posted a net recurring income of P27.9 billion in 2014, 244% higher than 2013, on the back of significant growth across its traditional and new businesses. The increase excludes the one-time gain registered in 2013 from the sale of its Meralco shares, which brought its net income at that time to P50.7 billion.
Consolidated sales revenues reached P 782 billion, 5% higher than the previous year, as majority of its businesses posted higher sales, while operating income improved 1% to P55.8 billion.
Meanwhile, consolidated EBITDA reached P88.1 billion, 14% higher than 2013.
San Miguel Brewery Inc.’s consolidated volumes grew to 207.3 million cases, 2% higher than last year. Domestically, SMB implemented new campaigns and relevant consumer and trade programs to boost equity and beer consumption. Meanwhile, Beer International operations introduced Cerveza Negra and San Mig Light in draught formats and further pushed exports to the overseas market. Consolidated sales revenue grew 5% to P79.0 billion.
Operating efficiencies and cost management, coupled with volume improvement, brought consolidated operating income to P22.1 billion, a 2% growth versus last year. Beer International operations, in particular, contributed double-digit improvement in operating income. Net income grew 8% to P13.5 billion.
Ginebra San Miguel Inc. posted an operating income of P358 million--a turnaround from 2013’s loss of P793 million on improved volume sales and lower costs. Domestic liquor volume rose 4%,resulting in an 8% revenue growth to P15.5 billion.
It was another growth year for San Miguel Pure Foods Company Inc., as revenues reached P103 billion. This is a 3% improvement from last year, on the back of the strong performance of its Agro-Industrial, Flour Milling and Foodservices businesses. Operating income grew 17% to P6.5 billion. Net Income ended at P3.8 billion, 6% lower than 2013, when the company posted gains from the Meralco share sale.
San Miguel’s packaging group’s operating income grew 11% to P2.3 billion, even as revenues declined 4% to P24.2 billion. Improvements in efficiency and cost containment, coupled with improved performance from paper, PET and exports, allowed the group to deliver a substantially higher operating performance.
SMC Global Power finished strong with a 26% growth in operating income at P25.9 billion, driven by higher bilateral volumes. Consolidated off-take volumes also improved 5% to 17,001 GWh.
Higher average WESM prices also helped bring consolidated revenues to P84.3 billion, 14% increase from the previous year. Meanwhile, construction of SMC Global Power’s greenfield power plants in Malita, Davao and Limay, Bataan remain on track.
Petron ended the year with a 4% growth in revenues, which reached P482.5 billion. Volumes increased 6% to 86.5 million barrels. Domestically, Petron sold 51.5 million barrels, a 9% improvement as sales from major market segments namely Retail, LPG and Lubricants grew significantly. Petron Malaysia contributed 35 million barrels, on the back of strong retail and aviation fuel sales.
The company posted an operating profit of P7.6 billion, amid record losses being posted industry-wide. This was credited to the improvement in volumes, completion of strategic projects and pro-active risk-management that cushioned the impact of higher-priced inventory being sold at lower prices in the second half of the year. Consolidated Net Income was better than expected at P3 billion. Petron has already completed its USD2-billion RMP-2 project, and is ramping up production in preparation for its commercial operation.
On March 5, SMC, through wholly-owned subsidiary San Miguel Holdings Corp., took control of the South Luzon Expressway and the Skyway System with effective stake of 76% and 83.45%, respectively.
Meanwhile, ongoing infrastructure projects are also progressing well.
- The Tarlac Pangasinan La Union Expressway (TPLEX) opened the 14-kilometer stretch from Carmen to Urdaneta in December, bringing the total length of the tollroad that is operational to 63 kilometers.
- The NAIAx project is on track, with 14 of 17 ramps now in different stages of construction.
- Construction of 20 pier heads for the Skyway Stage 3 projectis ongoing; 16 are now in place and have recently been rotated.
- Construction of the runway extension of the Boracay Airport is also on track. Paving of the runway extension is ongoing and the company aims to bring its total length to 1,800 meters by middle of this year.
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