San Miguel Profit to Rise to 39 Billion Pesos in 2013, Ang Says

San Miguel Corp. (SMC), the Philippines’ largest company by sales, said profit will probably rise 44 percent this year with all units except Philippine Airlines Inc. expected to contribute.

Net income will probably increase to 39 billion pesos ($878 million) from about 27 billion pesos in 2012, President Ramon Ang said in a mobile-phone message without elaborating. The company doesn’t give formal earnings forecasts.

The company’s projected profit represents a more than fourfold increase from 2007 as it expanded into oil, power, mining, infrastructure and airlines. Fuel and oil accounted for about 60 percent of revenue in 2012, compared with about 92 percent from food and drinks in 2008, according to data compiled by Bloomberg.

San Miguel shares rose 2.5 percent to 60.50 pesos at the close in Manila, its biggest gain since Nov. 27. The stock has fallen 43 percent this year.

Profit at the company, started more than a century ago as a brewer, fell 60 percent to 7.5 billion pesos in the nine months ended Sept. 31 as it posted a foreign-exchange loss of 12.3 billion pesos. The peso has fallen 7.7 percent against the dollar this year after rising 7 percent in 2012.

Separately, the Philippine Stock Exchange today said it approved the application of San Miguel’s majority shareholder with 66 percent, closely held Top Frontier Investment Holdings Inc. to make 490.2 million shares available for trading by the public. Under the application, the shares can be traded on the exchange without first being sold in an initial public offering.

Photographer: Julian Abram Wainwright/Bloomberg

Ramon Ang, president of San Miguel Corp. Close

Ramon Ang, president of San Miguel Corp.

Close
Open
Photographer: Julian Abram Wainwright/Bloomberg

Ramon Ang, president of San Miguel Corp.

San Miguel, which also owns 49 percent of Top Frontier, in October said it would provide 240.2 million Top Frontier shares as a dividend to shareholders.

To contact the reporter on this story: Cecilia Yap in Manila at cyap19@bloomberg.net

To contact the editor responsible for this story: Chua Baizhen at bchua14@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.