MANILA, Philippines—San Miguel Corp. will more than double its revenue this year by consolidating some of its main acquisitions in the energy and petroleum businesses into the parent firm, marking a turning point for the company from being Southeast Asia’s largest food firm into a fully diversified conglomerate.
In an interview with the Inquirer, San Miguel president Ramon Ang said the company’s revenue for 2011 may reach P530 billion, from only P230 billion last year.
“This is just from consolidating the four power companies—the four power-generation plants—and Petron Corp.,” he said. “We have not even consolidated our other businesses yet like telecommunications, mining, coal, infrastructure and Meralco.”
More importantly, Ang added that San Miguel was targeting to grow its revenue to the P1 trillion mark by 2016.
“In five years, the food business will hopefully comprise only 20 percent of our total sales,” he said, explaining that the balance of 80 percent should ideally come from its investments in the energy, petroleum and infrastructure businesses.
According to Ang, his five-year goal is for San Miguel’s revenue mix—ranked by contribution to the conglomerate in five years—to be made up of energy and power, infrastructure and its traditional food business.
Counting other listed companies under its control, San Miguel became the country’s largest conglomerate in terms of market capitalization due to a surge in share prices last year, eclipsing similar measures for the Ayala group and the PLDT group.
Ang explained that of the projected P530 billion in revenue this year, only P214 billion will come from the conglomerate’s traditional food-and-beverage businesses.
“All in all, new businesses will contribute around P306 billion for this year, from Petron and the four generating plants,” he said, explaining that about P80 billion of this will come from Petron Corp., which is the country’s largest petroleum refiner and distributor.
The rest will come from its investments in companies that own the Sual, Ilijan, San Roque and Limay power plants.
At the same time, the San Miguel chief said that the company would also have to invest to expand the capacities of its recent acquisitions, especially Petron, which he explained holds great potential if its refinery could be retooled to take advantage of higher-value petrochemical by-products of its operations.
“This is just from consolidating the four power companies—the four power-generation plants—and Petron Corp.,” he said. “We have not even consolidated our other businesses yet like telecommunications, mining, coal, infrastructure and Meralco.”
More importantly, Ang added that San Miguel was targeting to grow its revenue to the P1 trillion mark by 2016.
“In five years, the food business will hopefully comprise only 20 percent of our total sales,” he said, explaining that the balance of 80 percent should ideally come from its investments in the energy, petroleum and infrastructure businesses.
According to Ang, his five-year goal is for San Miguel’s revenue mix—ranked by contribution to the conglomerate in five years—to be made up of energy and power, infrastructure and its traditional food business.
Counting other listed companies under its control, San Miguel became the country’s largest conglomerate in terms of market capitalization due to a surge in share prices last year, eclipsing similar measures for the Ayala group and the PLDT group.
Ang explained that of the projected P530 billion in revenue this year, only P214 billion will come from the conglomerate’s traditional food-and-beverage businesses.
“All in all, new businesses will contribute around P306 billion for this year, from Petron and the four generating plants,” he said, explaining that about P80 billion of this will come from Petron Corp., which is the country’s largest petroleum refiner and distributor.
The rest will come from its investments in companies that own the Sual, Ilijan, San Roque and Limay power plants.
At the same time, the San Miguel chief said that the company would also have to invest to expand the capacities of its recent acquisitions, especially Petron, which he explained holds great potential if its refinery could be retooled to take advantage of higher-value petrochemical by-products of its operations.
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