San Miguel Corp. closed the first half of the year with a profit of P66.8 billion, equivalent to a quantum leap of 391.18 percent from P13.6 billion in the same period last year.
The company said it got a significant boost from “foreign exchange gains and a valuation uplift on its 33 percent residual investment in the Ilijan power facility and Excellent Energy Resources Inc. (EERI) facilities.”
“Excluding these one-off items, core profit rose 9 percent to P36.7 billion, as most units delivered solid operational performance and maintained sound cost management,” the company said.
The one-off item helped the conglomerate to offset the 9 percent slide in revenues, recorded at P718.2 billion from P789.23 billion, reflecting lower contributions from the power group after the Ilijan and EERI deconsolidation, and softer crude prices in the fuel and oil segment.
“Strong performances from the food, spirits, and infrastructure businesses helped offset the decline,” the company said.
“Our first-half results reflect the resilience and adaptability of our diverse portfolio. By staying focused on efficiency, discipline, and strategic priorities, we have sustained our growth momentum and continued to contribute to our country’s progress,” Ramon Ang, San Miguel chairman, said in a statement.
In the food and beverage business, San Miguel Food and Beverage, Inc. (SMFB) chalked up a first half profit of P23 billion, a 15 percent increase from P20 billion. Revenues grew 4 percent, at P201.2 billion from P193.45 billion.
The power unit under San Miguel Global Power posted a profit of P12.6 billion — it did not provide a comparative figure.
Revenues shed 19 percent to P80.1 billion from P98.88 billion, reflecting the impact of the Ilijan and EERI deconsolidation.
“The decline was partly cushioned by the full six months’ contributions of new power facilities, and significant contributions from its battery energy storage systems (BESS) facilities,” San Miguel said.
The oil refining and retailing business under Petron Corp. reported a net income of P5.3 billion. Revenues reached P386.4 billion, down 13 percent from last year’s P444.14 billion, mainly due to lower international oil prices and decreased volumes from its trading operations in Singapore.
The cement business, which combines the results of Eagle Cement, Northern Cement, and Southern Concrete Industries, posted sales of P17.8 billion, down 6 percent from P18.94 billion, due to lower sales volumes and weaker average selling prices as competition increased amid weakening demand and the continued influx of imported cement. San Miguel did not provide a comparative bottom line.
Meanwhile, the infrastructure business under SMC Infrastructure posted an operating income of P11.1 billion, up 8 percent from P10.28 billion.
Revenue grew 7 percent, at P19.9 billion from P18.6 billion, driven by a continued increase in average daily traffic at all its operating toll roads.
