Diversified conglomerate San Miguel Corp. (SMC) saw a vast turnaround in its first-half profit this year, registering a net loss of P2.4 billion from the P14.12-billion earnings it registered in the same period in 2012.
An SMC statement showed that including unrealized foreign exchange losses, the group’s net loss attributable to the equity holders of the parent company amounted to P2.4 billion.
“The strengthening of the dollar against the peso, however, resulted in foreign exchange losses of P10.2 billion in June dragging the company’s overall performance for the period,” SMC said.
According to the listed firm, its unrealized foreign exchange losses are almost fully covered by actual gains of P9.6 billion from the sale of 64.3-million Meralco shares sold at P270 a share in July.
Solid performances from SMC’s new and core businesses are also expected to further mitigate the effects of currency fluctuations, the company added.
Meanwhile, SMC reported revenues of P357.5 billion for the first six months of the year, up 9 percent following strong performances from food subsidiary San Miguel Pure Foods and Petron Malaysia, which was consolidated into the San Miguel Group in April 2012.
SMC’s operating income also rose 19 percent to P28.9 billion, brought about by lower generation costs from SMC Global Power and growth in volumes in the Food Group’s operations, while the group’s earnings before interest, taxes, depreciation and amortization, or Ebitda was up 9 percent to P40.9 billion.
“Overall, the numbers reflect the progress we are making, along with the areas where we need to work harder,” said Eduardo Cojuangco Jr., SMC chairman and chief executive officer.
For the group’s beer business, San Miguel Brewery Inc.’s revenues for the first semester reached P36.8 billion, at par with last year despite the significant hike in excise tax rates.
The operating income of SMB also ended at P10.7 billion, slightly lower than the previous year, helped by better results from the brewery’s international operations, continuing cost management efforts and operational improvements.
Ginebra San Miguel, on the other hand, has been hard hit by the hike in excise taxes, with revenues falling 6 percent to P6 billion.
Operating income of San Miguel Pure Foods Co. Inc. also grew 31 percent to P2.4 billion, while San Miguel Packaging Group’s recorded an operating income of P1.2 billion for the period.
For SMC’s power business, SMC Global Power’s off-take volume for the first semester reached 8,407 gigawatt hours, marginally higher from the same period last year. Lower generation costs, according to the group, resulted in a 25-percent increase in operating income to P11 billion.
Petron Corp., meanwhile, posted a net income of P1.1 billion, more than five times higher than the prior year, stemming from Petron Malaysia’s better income performance and lower financing charges.
In a separate disclosure, the board of directors of SMC announced on the same day that its board has authorized its management to discuss, negotiate and to enter into a joint venture with K-Water Resources Corp. (K-Water), under terms and conditions favorable to the listed diversified conglomerate, to create an entity to undertake the administration, rehabilitation, operation and management of the Angat Hydroelectric Power Plant.
“Appropriate shall be made to the exchange upon execution of definitive agreements with K-Water,” SMC said. No further details were disclosed.