San Miguel 2012 profits up 35% to P38.6-B

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The country's biggest business group earned P38.6 billion and revenues reached P689.9 billion in 2012

MANILA, Philippines (UPDATED) – The country’s biggest business group reported a P38.68 billion net income before minority interest, up 35% from a year ago’s P28.5 billion on strong performance of core and new businesses.

In a statement on Thursday, March 21, diversified conglomerate San Miguel Corp. said its net income attributable to the parent reached P27.6 billion in 2012, up 57% from a year ago’s P17.5 billion.

Below are the highlights of the financial performance for 2012:

  • Operating income reached P52.8 billion, down 6% due to volatility of crude prices and higher raw material costs in its food business 
  • Total Sales reached P698.9 billion, up 30% from P535.8 billion
  • New businesses accounted for over 70% of total revenues and grew 46% year-on-year. The old businesses — beverage, food, and packaging businesses — grew 4%
  • Total Assets reached P1.038 trillion
  • Cash balance stood at P125.6 billion
  • Interest bearing debts reached P375.5 billion
San Miguel's financial performance through the years. Figures in BILLION PESOS. Research by Ramon Calzado

“Our performance over the last 12 months points to the strategic value of our growing portfolio. It’s the result of the discipline that we have brought to our day-to-day operations, and our success in making the most of synergies among our subsidiaries,” San Miguel president and chief operating officer Ramon S. Ang said in a statement.

Below are the contribution and performance of each business units:

Contribution to Total Revenues 

San Miguel Brewery Inc. summary:

  • Consolidated revenues reached P75.6 billion, up 5% 
  • Cases sold in 2012 reached 224.8 million, slightly higher than the 223.8 million in 2011
  • Operating income reached P22.37 billion, up 9%
  • Revenues from international operations (including Indonesia, Thailand, Hong Kong and its export business) increased by 6%  
  • Domestic sales accounted for bulk at P186.3 billion while international sales contributed P38.5 billion
  • Subsidiary Ginebra San Miguel Inc. sold 19% more volumes for its flagship Ginebra San Miguel brand. Domestic volume reached 23.8 million cases, down 5% from a year ago. Operating losses were pared down to P566 million from P891 million in 2011. 

San Miguel Pure Foods Company Inc. summary:

  • Sales revenues reached P95.79 billion, up 7% due to higher demand, the launch of new products, and the continued expansion of its distribution network
  • Operating income reached P5.25 billion, down 14% from previous year’s due to cost issues
  • Net income attributable to the equity holders of the parent company reached P4.23 billion, up 3%

San Miguel Yamamura Packaging Corp. summary:

  • Revenues reached P24.46 billion, a 1% improvement from 2011 levels
  • Operating income reached P2.3 billion, up 6% due to operational efficiencies 

Petron Corp. summary:

  • Revenues reached P424.8 billion, up 55% from a year ago driven by the consolidation of its Malaysian operations, which contributed P142 billion in revenues. Revenues from local operations rose 3%
  • Operating income reached P9.39 billion, a 38% drop due to volatility and significant price swings in both crude oil and petroleum product prices. The fall of the Dubai crude from a high of US$124 per barrel to $89 resulted in 2nd quarter losses for the Philippine and Malaysian operations
  • Net income declined to P2.3 billion, down a significant 73%. Net income from Petron Malaysia was at P232 million.
  • Petron sold 74.276 million barrels in 2012, up 59% 

SMC Global Power summary:

  • Revenues reached P74.7 billion, a 4% increase. Its Sual, Ilijan, and San Roque plants generated a total of 15,250 gigawatt hours, 6% higher than a year ago
  • Capacity utilization was at 71% compared to 67% in 2011 due to higher bilateral requirements despite various forced outages. Consolidated off-take volume grew 7% to 15,961 GW hours
  • Operating income was at P17.1 billion, up 2%

Infrastructure businesses summary:

  • MRT-7 rail project is awaiting release of performance undertaking. Financial close is expected by December 2013
  • At the Boracay airport project, hill shaving is ongoing, and the completion of preliminary design and tendering is expected to be completed within the year
  • Skyway 3 or the NLEx-SLEx Connector road, a join project with partner Citra Management, is awaiting the final agreement on the comon alignment area. 

Other businesses:

  • Philippine Airlines (PAL) and its budget arm PAL Express
  • It has stakes in Liberty Telecoms, which operates WiMAX broadband services. It also has a stake in Eastern Telecommunications Philippines, Inc.
  • It has a stake in Bank of Commerce
  • It is also eyeing oil and natural gas fields, and may boost its mining interests



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