San Miguel's net income doubles on sale of telco assets

MANILA, Philippines – San Miguel Corporation (SMC) saw its net income more than double to P32.38 billion in the first half of the year, mainly because of the one-time gain from the sale of its telecommunications business.

SMC told the Philippine Stock Exchange that its first half net income surged by 107% to P32.28 billion, from P17.01 billion recorded in the same period last year on strong performance of traditional businesses and time gain from the sale of its telecommunications business.

The sale of its telco business enabled San Miguel to book a one-time gain of P11.8 billion, representing mainly recovery of costs and losses, interest expenses and provisions incurred in previous years.

However, its net sales in the first half of the year inched down by 1% to P328.1 billion from P334 billion in the same period in 2015.

SMC said in its regulatory filing that income from operations jumped 19% from January to June this year to P48.75 billion.

Strong traditional businesses

The group's beer unit San Miguel Brewery Incorporated performed strongly during the period, with consolidated revenues increasing by 19% to P47.4 billion and operating income gaining 16% to P12.6 billion.  

San Miguel Brewery's first half net income ended at P8.3 billion, 20% higher than last year.

Liquor unit Ginebra San Miguel Incorporated's domestic volumes reached 11.4 million cases, 12% higher than last year. 

SMC said Ginebra's net income rose to P138 million in the first half of the year, from P5.4 million last year.

San Miguel Pure Foods also sustained its momentum throughout the first half as it reported consolidated revenues of P53.2 billion, 5% higher than last year. 

Meanwhile, San Miguel Packaging Group's revenues rose 12% to P13.5 billion, driven mainly by its glass business and Australian operations, which posted double-digit growth. 

Petron Corporation posted a consolidated net income of P5.3 billion in the first half of 2016, a 55% increase from the previous year.

The company attributed the growth to a surge in sales volumes, aggressive network expansion, improved production and cost efficiencies, and focused customer-centric campaigns.

Meanwhile, SMC Global Power's consolidated revenues rose 2% to P41.1 billion in the first half of the year.

The conglomerate's infrastructure unit San Miguel Holdings Corporation generated consolidated revenues of P9.78 billion, 14% higher than last year.

Operating income rose 9% to P5 billion in the first half of the year.

San Miguel said construction of major infrastructure projects, such as the Ninoy Aquino International Airport Expressway, Boracay Airport, Skyway Stage 3, Metro Rail Transit Line 7, and the Bulacan Bulk Water Project, remain on track. –