San Miguel net income up 26% to P38.2 billion in 2015
MANILA, Philippines – Conglomerate San Miguel Corporation (SMC) reported consolidated net income, before foreign exchange translations, of P38.2 billion ($824.7 million) up 26% from 2014, the firm said in a statement following an investors briefing on March 17.
The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) was up 23% at P108.6 billion ($2.344 billion).
SMC also reported a 41% surge in operating income to P78.7 billion ($1.699 billion), driven mainly by the robust performance of its food, beverage, and packaging units.
There were also higher margins from subsidiary Petron Corporation as a result of stabilizing crude oil price environment, although at a lower level during the last half of 2015.
However, consolidated sales revenues declined by 13% to P674 billion ($14.55 billion) due to the steep drop in crude oil prices from $111 per barrel in 2014 to $31 per barrel towards the end of 2015.
The scheduled major maintenance shutdown of the Malampaya gas facilities and the downtime resulting from the scheduled major maintenance of the Ilijan and Sual power plants also had an effect, SMC said.
San Miguel Brewery Incorporated
San Miguel Brewery Incorporated (SMB) posted consolidated revenues of P82.4 billion ($1.779 billion), 4% higher than in 2014.
Domestic operations registered volume and revenue growths of 3% and 9%, respectively. Consolidated operating income amounted to P22.6 billion (P487.8 million), up 2.5%, while net income reached P13.5 billion ($291.4 million). The EBITDA amounted to P25.7 billion ($554.8 million).
Ginebra San Miguel Incorporated
Ginebra San Miguel Incorporated, SMC’s liquor arm, sustained saw volumes improve by 4% to 23 million cases, with volumes for flagship Ginebra San Miguel up by 5%.
Consolidated revenues grew 7% to P16.6 billion ($358.4 million) while operating income surged 73% to P621 million ($13.40 million). EBITDA amounted to P1.3 billion ($28.06 million).
San Miguel Pure Foods Company Incorporated
San Miguel Purefoods Company Incorporated saw revenues rise 4% to P107 billion ($2.310 billion). Operating income also rose 18% to P7.6 billion ($164 million), on the strong performance of its Branded and Feeds businesses.
With lower interest expenses, net income jumped 24% to P4.8 billion ($103.6 million).
EBITDA amounted to P10.3 billion ($223.4 million).
San Miguel Yamamura Packaging Corporation
San Miguel Yamamura Packaging Corp. saw revenues rise 3% to P25.0 billion ($539.7 million).
Consolidated operating income grew 2% to P2.3 billion ($49.65 million) as a result of improved efficiencies and cost management. The EBITDA amounted to P4.1 billion ($88.52 million).
SMC Global Power Corporation
Power subsidiary SMC Global Power ‘s Consolidated revenues reached P77.5 billion ($1.672 billion) while operating income amounted to P23.7 billion ($511.6 million).
The EBITDA amounted to P31.4 billion ($677.8 million).
SMC Global Power’s consolidated offtake volume declined 3% from the previous year to 16,558 GWH as the scheduled major maintenance of the Malampaya gas facility affected the output of the Ilijan facility.
The major maintenance on the Ilijan and Sual Power Plants also contributed to the decline.
Petron Corporation posted a net income of P6.3 billion ($135.9 million), more than double the previous year’s earnings, mainly driven by a surge in sales volumes.
Operating income grew 138% to P18.1 billion ($390.7 million). The EBITDA amounted to P22.3 billion ($481.3 million).
Revenues however declined 25% to P360 million ($$7.771 million) due to a nearly 50% drop in oil prices.
Despite weak oil prices in 2015, the differential between crude and finished products remained strong and the mix of higher value products improved, SMC said.
San Miguel Holdings Corporation
SMC’s infrastructure unit full year 2015 results saw a 19% increase in revenues to P15.2 billion ($328.1 million) and a 15% rise in operating income to P8.5 billion ($183.4 million),
The EBITDA amounted to P10.3 billion ($222.3 million).
Following the consolidation of SLEX and Skyway 1 and 2 in early 2015, the business contributed P13.3 billion ($287.1 million) in revenues and P7.3 billion ($157.7 million) in operating income to the SMC consolidated results, SMC said.
The Company said that the Boracay Airport runway extension is now complete and a major portion of the NAIA Expressway will be completed by 2nd quarter this year.
Ongoing projects include the Skyway Stage 3 and TPLEX’s phase 3 and the firm added that it is currently preparing to start work on the SLEX TR-4 project.
Its MRT-7 project, on the other hand, has financing ready to fund construction, which could take about 3 to 3 and half years to complete, the company said.
SMC has plans to enter the telecommunications space, but long-term discussions over a potential joint venture with Australian Telco Telstra were abandoned earlier this week.
Despite the setback, SMC said it plans to continue with its plans to set up a third network although no definitive timeframe was given. – Rappler.com
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