Diversified conglomerate San Miguel Corporation (SMC) reported consolidated sales revenue of P509.2 billion in the first nine months of the year, up 29% from year ago, with most of its businesses enjoying continued growth, backed by increased volumes and favorable selling prices.
Consolidated net income attributable to equity holders of the parent company surged 61% to P19.2 billion as a result of higher gains from other investments and favorable exchange rates.
Operating income reached P37.8 billion, 9% lower than 2011, but still a notable improvement over first semester figures, with Petron posting improvement starting August and the Food Group sustaining improved profitability during the third quarter. Consolidated recurring EBITDA was at P55 billion.
Consolidated revenues for San Miguel Brewery Inc. for September year-to-date 2012 amounted to P53.8 billion, up 3% over the previous year with volume sales totaling 164 million cases. Its international beer operations and exports business also continued to post strong revenue growth. Management of fixed costs for beer domestic and improved operating performance for the international business resulted in a 5% increase in SMB’s operating income, which reached P15.4 billion.
Ginebra San Miguel Inc. continued its recovery, posting revenues of P10.9 billion for the period. While this was still 5% lower compared to the same period last year, GSMI was able to pare its operating loss down to P393 million—a 26% improvement from 2011. Domestic volumes for the third quarter likewise increased 7% versus 2nd quarter and 14% vs. last year.
Strong demand, which resulted in volume and revenue increases in the domestic businesses, boosted the Food Group’s revenue to P69.4 billion, up 8% over same period last year.
Operating income for year-to-date September amounted to P3.3 billion, lower than last year due to the effects of high corn prices and low supply of cassava experienced during the first quarter. Improvements that started in the second quarter continued through the third quarter, resulting in an upward trend in operating income quarter by quarter and showing a 17% improvement during the third quarter from the second quarter. Increased use of alternative inputs and the softening of corn prices tempered the impact of a cassava shortage and higher corn prices. Further improvements are expected due to higher demand from the peak months of the fourth quarter.
The San Miguel Packaging Group’s revenues reached P17.9 billion, a modest 1% growth from last year. Domestic metal cans, composites and plastic segments delivered higher sales, coupled with the continued expansion of the plastic leasing operations. Continuing efficiency initiatives and fixed cost management programs resulted in consolidated operating income growth of 5%, reaching P1.7 billion.
Higher WESM volumes from Sual and Ilijan however boosted consolidated off-take volume for the first quarter of 2013 to 4,091 gigawatt hours, 1% higher than last year.Operating income reached P5.54 billion, 12% higher than year-ago levels.
SMC Global power reported 7% growth in consolidated revenue amounting to P57.4 billion. Operating income was placed at P13.9 billion, up 26% from last year due to a combination of higher revenues and a decline in operating expenses.
Petron Corp. sold 53.2 million barrels in the first nine months of 2012, 55% more than in the same period last year. Strong domestic demand resulted in a 4% hike in volume, posted at 35.6 million barrels. Petron Malaysia posted a significant contribution with 17.6 million barrels sold. Consolidated revenue amounted to more than P307.3 billion, a 52% increase over last year.
Consolidated operating income amounted to P6.5 billion, still lower than last year, as global oil markets remained volatile particularly from April to July. Slight increases in crude oil prices and finished products, which started in the second week of July, are likely to continue for the rest of the year.
Other New Businesses
The Company said execution of identified growth strategies for newly acquired Philippine Airlines (PAL) continues. Just recently, the flag carrier signed what is considered the biggest aircraft deal in the Philippines with Airbus, ordering a total of 65 aircraft for delivery over the coming years, to implement its re-fleeting and expansion programs.
The company will also start providing service between Manila and Toronto on November 30, 2012. The airline will field its brand-new, long-range flagship, the Boeing 777-300ER, which seats more than 350 passengers, for the 17-hour, non-stop flight to Toronto. This is the first step in a network expansion that PAL will undertake.