San Miguel profit falls to P26B in Jan-June
Credit to Author: ANGELICA BALLESTEROS, TMT| Date: Thu, 08 Aug 2019 16:17:41 +0000
SAN Miguel Corp. (SMC) saw its net income slide to P26.15 billion in the first half of the year, dragged down by profit decreases in its petroleum and food segments.
In a statement on Thursday, the listed conglomerate said the amount was a 5-percent decrease from P27.58 billion in January to June 2018.
This, despite its revenues climbing by 2 percent to P509.5 billion in the period from last year’s P499 billion.
Operating income declined by 14 percent to P57.6 billion in the first semester from P67 billion year-on-year, while earnings before interest, tax, depreciation, and amortization dipped by 4 percent to P79.9 billion from P83.5 billion.
San Miguel said the shutdown of subsidiary Petron Corp.’s refinery in Limay town, Batangas province, as well as the rising costs of raw materials, weighed on its first-half financial performance, offsetting the strong earnings of its beer, spirits and power units.
Food unit San Miguel Food and Beverage Inc.’s net income slipped by 5 percent to P14.67 billion in the first half from P15.37 billion a year ago.
On a stand-alone basis, Ginebra San Miguel saw its net income nearly double — 94 percent — to P980 million, while San Miguel Brewery posted a 12-percent jump in its net profit to P13.26 billion. In contrast, San Miguel Pure Foods Inc.’s net income fell by 85 percent to P447 million.
SMC Global Power Holdings Corp.’s net profit more than tripled to P7.26 billion from P1.87 billion, and its net sales grew by 26 percent to P72.5 billion from P57.4 billion.
As for San Miguel’s other businesses, San Miguel Yamamura Packaging Corp. recorded net sales of P17.8 billion, up 2 percent from P17.5 billion last year.
SMC Infrastructure registered a 1-percent increase in net sales to P12.3 billion from P12.14 billion, while its operating income slid by 3 percent to P6.03 billion from P6.2 billion.
Petron saw its net profit plunge by 72 percent to P2.62 billion from P9.5 billion, as operating income and revenues both fell by 37 percent and 7 percent, respectively.
Shares of San Miguel shed P3 or 1.69 percent to close at P175 apiece on Thursday.