San Miguel posts 244% growth in recurring net income

MANILA, March 26 (PNA) — Diversified conglomerate San Miguel Corp. (SMC) posted a whopping 244-percent surge in profit in 2014 on the back of significant growth across its traditional and new businesses.

SMC told the local bourse its net recurring income reached Php27.9 billion in 2014 from Php8.11 billion the previous year.

The increase excludes the one-time gain registered in 2013 from the sale of its Meralco shares, which brought its net income at that time to Php50.7 billion.

Consolidated sales revenues reached Php782 billion, five percent higher than the previous year, as majority of its businesses posted higher sales.

San Miguel Brewery Inc.’s net income grew eight percent to Php13.5 billion with consolidated volumes growing to 207.3 million cases.

Ginebra San Miguel Inc. posted an operating income of Php358 million — a turnaround from 2013’s loss of Php793 million on improved volume sales and lower costs.

It was another growth year for San Miguel Pure Foods Company Inc., as revenues rose by three percent to Php103 billion on the back of the strong performance of its Agro-Industrial, Flour Milling and Foodservices businesses.

Net Income ended at Php3.8 billion, six percent lower than 2013, when the company posted gains from the Meralco share sale.

San Miguel’s packaging group’s operating income grew 11 percent to Php2.3 billion, even as revenues declined four percent to Php24.2 billion.

The conglomerate attributed the higher income to improvements in efficiency and cost containment, coupled with improved performance from paper, PET and exports, allowed the group to deliver a substantially higher operating performance.

SMC Global Power finished strong with a 26-percent growth in operating income at Php25.9 billion, driven by higher bilateral volumes.

Petron Corp. posted an operating profit of Php7.6 billion, amid record losses being posted industry-wide.

This was credited to the improvement in volumes, completion of strategic projects and pro-active risk-management that cushioned the impact of higher-priced inventory being sold at lower prices in the second half of the year.

Meanwhile, SMC said its ongoing infrastructure projects are progressing well. These are the Tarlac Pangasinan La Union Expressway (TPLEX), NAIA Expressway project, the construction of 20 pier heads for the Skyway Stage 3 project and the construction of the runway extension of the Boracay Airport.

On March 5, SMC, through wholly-owned subsidiary San Miguel Holdings Corp., took control of the South Luzon Expressway and the Skyway System with effective stake of 76 percent and 83.45 percent, respectively. (PNA)