Conglomerate San Miguel Corp. (SMC) said Monday its net income plunged by 44 percent to P37.7 billion in the first half from the previous year’s P66.76 billion as foreign exchange effects and non-core items dented its financial result during the period.
Core net income for the period, which stripped off these one-offs and forex changes, reached P54.2 billion, up 48 percent from last year’s P36.69 billion, as the company said its underlying businesses remained resilient despite volatile global markets, higher costs and cautious consumer spending.
Last year’s result also benefited from a P21.9-billion gain from the chromite transaction which involved the de-consolidation of certain power assets, the company said.
Consolidated revenues rose 34 percent to P964.1 billion from the previous P718.2 billion, driven by higher volumes and prices in its fuel and oil business, stronger contributions from power and continued growth in food.
‘Our businesses performed well in the first half despite a more challenging operating environment. While cost and market pressures may continue, our underlying operations remain sound. We will stay disciplined on costs, continue improving efficiency, and invest in areas that support our long- term growth and the country’s broader economic development,’ San Miguel Chairman and CEO Ramon S. Ang said.
SMC Infrastructure posted first-half revenues of P20.5 billion, up 3 percent from the previous year’s P19.85 billion as average daily traffic dipped 1 percent to 1.07 million vehicles. Elevated fuel prices weighed on road travel demand. Operating income was flat at P11.1 billion.
San Miguel Global Power posted first-half revenues of P101.9 billion, up 27 percent from the previous year’s P80.14 billion, while operating income rose 90 percent to P42 billion from the previous year’s P22.12 billion.
The company’s cement business, which includes Eagle Cement Corp., Northern Cement Corp. and Southern Concrete Industries Inc., posted first-half revenues of P18.2 billion, up 2 percent from the previous P17.82 billion.
Higher sales volumes and market share gains offset lower average selling prices amid intense competition and continued pressure from cement imports, the company said.
Operating income declined 9 percent to P3.2 billion from the previous P3.49 billion.
San Miguel Food and Beverage Inc. (SMFB) posted revenues of P205.3 billion in the first half, up 2 percent, as growth in its Food business helped offset softer consumer spending and disruptions in some export markets. EBITDA slipped 1 percent to P38.8 billion, while operating income and net income both declined 4 percent to P28.8 billion and P22.1 billion, respectively.
Food revenue rose 5 percent to P99.3 billion, driven by growth in feeds and sustained demand for branded products, including Magnolia dairy and coffee products, Purefoods Luncheon Meats and Pinoy Favorites, as well as its more affordable product lines. Operating income went up by 2 percent to P8.8 billion, while net income rose 8 percent to P6.4 billion.