San Miguel reports 72% jump in profit

Manila Standard Today by Jenniffer B. Austria SAN MIGUEL, the country’s largest company by sales, said Friday its profit in the year to June rose 72 percent to P10.8 billion, boosted by the robust sales from Petron and SMC Global. Sales increased 168 percent to P263 billion, while operating income grew 136 percent to P31.5 billion. “We are continuously benefiting from our strategic shift to high-growth businesses,” company chairman and chief executive Eduardo Cojuangco Jr. said in a statement. “We are confident we can bring in more value to our shareholders from the company’s ongoing diversification.” San Miguel, a brewer for more than a century, has expanded into industries such as electricity, oil, mining and telecommunications to cut its dependence on beverages and food. Company president Ramon Ang last month said the company was considering energy investments in Indonesia and Australia to expand overseas following a series of acquisitions at home. SMC Global and Petron together accounted for 63 percent of San Miguel’s total revenue, with SMC Global reporting a 72-percent jump in consolidated operating income to P7.7 billion. Petron reported a 17-percent increase in sales to P134.9 billion. Its operating income grew by 62 percent to P10.8 billion and its net income to P6 billion. Higher beer sales in the domestic and international markets and effective sales initiatives boosted San Miguel Brewery’s financial results in the first half, when its consolidated revenue rose by 7 percent to P35.6 billion and its operating income increased by 8 percent to P10.2 billion. San Miguel Pure Foods Group reported a consolidated revenue of P42.3 billion, up 11 percent from 2010. Operating income was up 8 percent to P3 billion as a result of a continuing cost-reduction program. San Miguel Yamamura increased its revenue by 4 percent to P12 billion as a result of the strong performance of its glass and paper businesses and the higher export sales from its Australian business. San Miguel said its board had approved the sale of its 59.09 million shares in Manila Electric Co. to its unit San Miguel Purefoods Co. at P220 a share or P13 billion. The company said the purchase price was based on Manila Electric’s average trading price from Jan. 1 to July 31, with a discount of 12 percent. San Miguel acquired the shares, which represent a 27-percent stake in the power distributor, from the Government Service Insurance System.