Petron is main income driver of San Miguel in 2017
MANILA, Philippines – San Miguel Corporation (SMC) saw its recurring net income increase to P54.6 billion in 2017 on the back of strong growth of its oil unit Petron Corporation as well as its food and beverage businesses.
This was 11% higher than the P49.35 billion recorded in 2016.
SMC told the Philippine Stock Exchange (PSE) that its consolidated revenues reached P826 billion, up 21% from 2016, as sales across all its businesses continued to grow.
The listed conglomerate's consolidated operating income also went up by 11% to to P111 billion in 2017, from P99.7 billion reported in 2016.
Petron closed 2017 with a 30% higher net income at P14.1 billion, from P10.8 billion in 2016, as a result of its continued focus on high-value segments and strong sales volumes from both its Philippine and Malaysian operations.
Sales of San Miguel Brewery Incorporated, meanwhile, increased by 17% to P113.3 billion in 2017. Volumes reached 260 million cases, up 13% from 2016, driven mainly by favorable economic conditions and the brewery unit's marketing and sales initiatives.
Meanwhile, San Miguel Pure Foods Company Incorporated saw 16% growth in net income to P6.9 billion in 2017. (READ: Appetite for chicken, fresh meat boosts San Miguel Pure Foods' income)
Packaging unit San Miguel Yamamura Packaging Corporation reported P32.1 billion in revenues, a 17% increase, after it continued to expand its footprint in the region. The growth was mainly driven by continued growth in its Australian operations and higher sales from its glass, metal, and plastics businesses.
For its power unit, San Miguel saw consolidated revenues grow by 6% to P82.8 billion in 2017, pulled by higher realization prices from both bilateral and spot sales. But net income declined by 9% due to higher costs, lower bilateral volumes from Ilijan, and the sale of the Limay Cogen plant in 2016. – Rappler.com