Forex, telco assets drag San Miguel net income in 1st half of 2017

Chrisee Dela Paz
Forex, telco assets drag San Miguel net income in 1st half of 2017
The diversified conglomerate feels the impact of the Philippine peso depreciation and the absence of the one-time gain from its telco assets sale

MANILA, Philippines – San Miguel Corporation (SMC) recorded P26.1 billion in net income for the 1st 6 months of the year, down 26% from the P35.3 billion recorded in the same period last year, due to foreign exchange effects and a one-time gain from the sale of its telecommunications assets in 2016.

Without the two factors, San Miguel recurring net income went up by 21% to P27.6 billion from a year ago level of P22.83 billion.

San Miguel said in a disclosure to the Philippine Stock Exchange (PSE) that net sales for the 1st half of 2017 jumped 20% to P393.4 billion, from P329.1 billion in the same period in 2016.

Income from operations also improved by 10% to P53.44 billion in the 1st half of 2017. (READ: Meet Ramon Ang, Filipino billionaire and Duterte’s friend)

San Miguel Brewery’s net income grew 14% to P9.3 billion, as net sales rose 12% to P53 billion.

Ginebra net income surges

The net income of Ginebra San Miguel Incorporated also surged by 92% in the 1st two quarters of 2017 to P265 million, from P138 million in 2016, as net sales climbed 20% to P10.12 billion.

Meanwhile, San Miguel’s food manufacturing arm, San Miguel Pure Foods Company Incorporated, likewise delivered P3.1 billion in net profit during the 1st half of the year, up 26% from a year ago level. Its net sales inched up by 5% to P55.9 billion.

Petron Corporation also posted a 56% hike in its net income to P8.2 billion in the 1st half, as net sales climbed 28% to P206.9 billion.

On the other hand, SMC Global Power Holdings Corporation posted a slight decline in net sales to P40.6 billion, while its income from operations also dropped by 15% to P13.3 billion.

This was the result of lower bilateral volumes brought about by the scheduled annual maintenance shutdown of the Ilijan and Malampaya facilities earlier this year.

The group’s packaging unit San Miguel Packaging Corporation posted net sales of P14 billion, an increase from the 2016 level. SMC Infrastructure, meanwhile, booked net sales of P10.89 billion, which is 11% from a year ago level.

San Miguel president and chief operating officer Ramon Ang earlier announced the company’s plan to venture into electronics manufacturing and clean energy.

Ang described electronics manufacturing as a business that could deliver high margins. –

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