SMC hopes to reverse early profit losses

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LONDON: Listed diversified conglomerate San Miguel Corp. (SMC) is hoping to cap the year by reversing the early losses it incurred in the previous periods amid foreseen bullish operating income, among other factors.

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Ramon Ang, president and chief operating officer of SMC, said in an interview with reporters that the SMC Group may recover from the net loss it incurred in the first half of the year, which the company blamed on the huge foreign exchange losses. The conglomerate recorded a net loss of P2.4 billion during the period.

“We hope [we can reverse early losses]because peso usually becomes stronger during last quarter of the year when the overseas workers start remitting their income,” Ang said.

Including unrealized forex losses, SMC’s net loss attributable to the equity holders of the parent company amounted to P2.4 billion for the first half of the year.

But the company is still optimistic that the solid performance of its new and core businesses will further mitigate the effects of currency fluctuations.

Ang reiterated that the full-year income of the SMC group will be positive, pointing out that the company’s annual operating income for its beer business alone usually goes as high as $700 million.

“The company is in good position, with a very good cash flow, to be able to finance all its existing new projects,” he said.

“We will look for more opportunities,” Ang added.

No share sales
Ang also mentioned that although the company is willing to hear what potential investors have to say, the SMC Group has not planned to do a share sale for some of its business units such as San Miguel Pure Foods and Bank of Commerce.

“Lahat naman interesado sa negosyo natin, ibig sabihin napakaganda ng portfolio ng San Miguel business [A lot is interested in SMC business and it only means San Miguel has a very good business portfolio],” Ang said.

“We are interested to what they [investors]have to say,” he added.

For Bank of Commerce, Ang said that there is “no need of new investors.” But if there’s an opportunity and the group needs to recapitalize, the group can easily put more capital for the bank.

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