SMC net profit dips to ₱39.7 B

Published November 7, 2019, 12:00 AM

by manilabulletin_admin

By James A. Loyola

Diversified conglomerate San Miguel Corporation (SMC) reported a 5.25 percent dip in net income to ₱39.7 billion in the first nine months of 2019 from the ₱41.9 billion earned in the same period last year.

A logo of San Miguel Corporation (SMC) is seen at a main office in Ortigas city. (REUTERS/Romeo Ranoco / MANILA BULLETIN)
A logo of San Miguel Corporation (SMC) is seen at a main office in Ortigas city. (REUTERS) MANILA BULLETIN)

Consolidated revenues also dipped to ₱758.6 billion for the first nine months of the year from ₱761 billion in the same period of 2018. The firm said higher volumes from its beer, spirits, power, and infrastructure units continue to drive growth.

However, SMC’s fuel unit Petron Corporation continues to be weighed down by volatile global crude oil prices and weak refining margins, while San Miguel Foods faced headwinds from rising raw material costs.

San Miguel Food and Beverage, Inc. (SMFB) reported flat earnings of ₱22.92 billion in the first nine months of the year as the strong performance of its beverage segment was offset by effects of pricing pressures faced by its poultry business.

SMFB noted though that its consolidated operating income recovered in the third quarter with an 8 percent growth as poultry supply stabilized.

“The continuous recovery seen in the poultry business during the third quarter in particular, along the steady growth of our beverage business have been very encouraging,” said SMC president and chief operating officer Ramon S. Ang.

SMC Global Power Holdings Corporation’s consolidated operating income rose 16 percent to ₱30.0 billion and net income more than doubled from last year at ₱11.4 billion.

This was the result of higher bilateral sales volumes and improved operations at the Sual, Ilijan, and San Roque power plants, and the full nine-month operation of the Masinloc power plant.

Petron’s consolidated net income fell 70 percent to ₱3.6 billion as revenues for the nine-month period amounted to ₱381.7 billion, 9 percent lower than last year, as it continued to reel from volatile movements in global crude oil prices, weak refining margins, and a slowdown in demand.

SMC Infrastructure’s operating toll roads reported a combined 6 percent growth in vehicular traffic volume compared to the same period last year. Consolidated revenues reached ₱17.8 billion, while operating income amounted to ₱9.0 billion.