San Miguel posts robust 9-month performance

November 16, 2010 16:37

Diversifying conglomerate San Miguel Corporation posted a performance for the first nine months, boosted by growth in its core businesses and contributions from its power generation subsidiaries, reports with reference to San Miguel Corporation.

SMC's September year-to-date operating income rose to P19.7 bilion, 50% higher than year-ago level, as consolidated sales revenues amounted to P161.8 billion, 28% higher than last year.

Revenues across its core businesses sustained the positive growth seen in its first-half performance. Net income reached  P12.7 billion.

Domestic beer volume reached 131.9 million cases, a growth of 3% from 2009. Revenue amounted to P40.1 billion, a 9% improvement, while operating income grew 20% to P13.5 billion on account of higher volumes and stable raw material costs.

San Miguel Beer International meanwhile sustained growth in Thailand, Indonesia, and Vietman while volumes in North China and Exports also posted improvements.  However, difficult market conditions in South China dragged down consolidated sales revenue, which stood at $198 million, slightly lower than last year.

GSMI posted a net income of P748 million, 29% higher than in 2009. Domestic volume reached 28.9 million cases, 7% higher than last year. This resulted in an 18% increase in consolidated sales revenues, which reached P16.6 billion. Stable molasses costs contributed to a 36% increase in consolidated operating income, which stood at P1.2 billion.

Consolidated operating income rose to P4.17 billion, surpassing year-ago levels by 81%, pushed by favourable raw material prices in poultry, basic meats, flour, and dairy. Consolidated sales revenues stood at P57.7 billion, 3% higher than last year, brought on by volumes in poultry, feeds, flour, Vietnam feeds, and processed meats in Indonesia.

SMC's packaging arm meanwhile posted an 18% increase in consolidated sales revenue to reach P17.1 billion. The company saw higher glass and plastics volumes as well as its Australian and Asia-Pacific accounts. Consolidated operating income totalled P1.49 billion, 8% higher than in 2009.

SMC's four power plants, Sual, Limay, San Roque, and Ilijan, generated an estimated 7.4 million MWH as of September, registering total revenue of P45.2 billion, while operating income reached P5.73 billion. This resulted in additional revenues of P24.8 billion for the company.

It also reported that it recently took over operations of Caticlan Airport, gateway to Boracay island, the country's top tourist draw, through Trans Aire Development Holding Corp.

The company said it has completed initial improvements to the terminal, sprucing up the building and installing new air-conditioning systems, waiting chairs, security equipment, and power generators. It also said that construction on Phase 1 of its Tarlac-Pangasinan-La Union Expressway project, has already started.
SMC's performance is expected to further improve in the 4th quarter, historically a strong period for the firm's core businesses because of the Christmas season and contributions from the new businesses.

SMC President and Chief Operating Officer Ramon S. Ang pointed out that even if the company took on bigger initiatives, its traditional businesses continued to do well.

He said that the gains in SMC's power subsidiaries, which started operating as a unit only a year ago, illustrate the value of its new businesses. The company's outlook is even more positive once it consolidates earnings to include that of oil company, Petron Corp., by year's end.

The company recently announced major developments in its diversification strategy that have raised investor interest.

This includes its buy-in into Australian Indophil Resources, which partly owns the Tampakan Gold and Copper project in Mindanao; plans to raise fresh funds for its expansion, and a share sale/purchase agreement to acquire up to 51% of Universal LRT Holdings Corp., which holds the build-operate-transfer contract for the MRT-7 project.

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