San Miguel Profit Rises as Electric Power-Unit Income Soars
San Miguel Corp. profit surged 54 percent in the three months ended June, its biggest quarterly gain in more than a year, led by an increase at its electricity generating unit.
Net income for the Philippines’s largest company increased to 5.62 billion pesos ($134 million) in the three months through June from 3.66 billion pesos a year earlier. The figures were derived using first-half earnings reported today in a statement and data compiled by Bloomberg.
The century-old beermaker’s strategy of acquiring stakes in power providers, oil companies and infrastructure helped boost profit in the first half by 31 percent to 14.1 billion pesos as sales climbed 25 percent to 329.5 billion pesos, according to the statement. President Ramon Ang has said he expects sales to rise to almost $20 billion this year, mainly through acquisitions, while the company aims for revenue of $30 billion by 2017.
Operating profit at power unit SMC Global Power Holdings Corp. jumped 17 percent to 8.8 billion pesos as revenue rose 11 percent to 39.5 billion pesos. Profit at the beermaking unit, San Miguel Brewery Inc. (SMB), gained 6 percent to 10.8 billion pesos on a 4 percent increase in sales to 36.9 billion pesos.
San Miguel fell 0.8 percent to 112.1 pesos as of the close of trading in Manila today. The shares have dropped 4 percent this year, compared with a 21 percent advance on the benchmark Philippine Stock Exchange Index.
Net income at Petron (PCOR) Corp., San Miguel’s largest sales contributor, fell 93 percent to 432 million pesos in the first half from a year earlier on a loss at its local operations and the consolidation of its Malaysian business, it reported on Aug. 9. Petron completed the purchase of most of Esso Malaysia Bhd. in March.
Operating income fell 20 percent to 25.1 billion pesos in the first half because of higher prices for materials including crude oil, San Miguel said in the statement.
San Miguel plans to raise as much as 80 billion pesos by selling preferred, non-voting shares starting this month.
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