San Miguel Corporation reported a P52 B net income in 2016, an 80% increase over 2015, driven by higher revenues and better margins across its major businesses.
Excluding foreign exchange losses of P8.9 billion, consolidated income reached P61.2 billion.
Consolidated operating income rose to P99.7 billion, 24% higher than the P80.5 billion reported in 2015, with most of its businesses delivering double-digit income growth. Revenue grew by only 2% to P685 billion due to low fuel prices of Petron.
San Miguel Brewery delivered a record performance for 2016, with revenues amounting to P97.2 billion, 18% higher than 2015. Total volumes were up 12% to 230.4 million cases, pushing operating income to P27.2 billion, up 20% from last year. SMB’s domestic operations were bolstered by strong marketing campaigns and favorable economic conditions. Its international operations also posted significant improvements. Net income reached P17.7 billion, 31% higher than the previous year.
Ginebra San Miguel Inc. recorded higher volumes for the third straight year, reaching 25.2 million cases, 9% higher than 2015. Revenues reached P18.6 billion, 12% higher than last year. Operating income jumped 58% to P978 million while net income amounted to P361 million, a turnaround from last year's P386 million loss.
San Miguel Pure Foods Co., Inc. sustained its growth momentum throughout the year with consolidated revenues reaching P111.6 billion, 4% higher than the previous year, driven by robust volumes and favorable selling prices for chicken and value-added products. This partly offset the drop in flour prices as global grain stocks pile up. With improved margins, operating income grew 17% to P8.9 billion. Net income amounted to P6.0 billion, 26% higher than 2015.
San Miguel Packaging Group's sales revenues reached P27.4 billion, 9% higher than 2015 on the back of strong sales from its glass and plastics businesses and higher contributions from its Australian businesses. Operating income amounted to P2.6 billion, a 10% increase.
SMC Global Power reported a 5% increase in offtake volume to 17,355 gwh, with both the Sual and Ilijan power plants posting higher bilateral volumes. Revenues amounted to P78 billion. With lower generation costs and an improvement in generation volume from both Sual and Ilijan, operating income amounted to P26.7 billion, 13% higher than last year.
Petron Corporation ended 2016 strong, as consolidated net income reached P10.8 billion, 73% higher than the P6.3 billion it posted in 2015. Sales volume growth, better efficiencies from both Philippines and Malaysia operations, an increased crude run at higher product yields, and effective risk management, contributed to Petron’s solid performance. Helped by better margins and efficiencies resulting from the fully commissioned RMP-2 , operating income for the year grew 31% to P23.8 billion.
SMC’s infrastructure business, through San Miguel Holdings Corp., also delivered higher contributions, with revenues increasing 13% to P19.9 billion. This was mainly driven by steady growth in traffic volume for all SMC-operated toll roads – SLEX, Skyway 1 and 2, STAR and TPLEX. Operating income amounted to P9.8 billion, up 6% from 2015.