SMC reports P23.3-B net income for first half

San Miguel Corp. (SMC) announced on Tuesday an 18% growth in net income to P23.3 billion for the first half of the year.

This growth was driven by sustained improvements in its beer, spirits, infrastructure, and packaging units, along with contributions from its recent acquisition, Eagle Cement, the company said in an e-mailed statement.

Consolidated operating income also increased by 5% to P69.9 billion, despite challenges from rising raw materials costs, the company noted.

However, the conglomerate saw a 4% decline in consolidated revenues, amounting to P685.2 billion.

This decline was attributed to Petron Corp. being impacted by decreasing crude oil prices, and San Miguel Global Power facing lower volumes, according to the company.

There was a positive note in the form of a 10% increase in consolidated EBITDA (earnings before interest, taxes, depreciation and amortization), reaching P100.1 billion, according to the company’s statement.

“We’re greatly encouraged by the sustained growth we are seeing across most of our businesses. While there are challenges, we’re confident in the programs we have put in place to address them,” SMC President and Chief Executive Officer Ramon S. Ang said.

“We are also keeping our focus on executing on our projects, implementing our growth strategies, and providing our customers the high-quality service they expect from San Miguel,” he added. — Adrian H. Halili