SMC net income slightly up in 2018

Diversified conglomerate San Miguel Corp. (SMC) posted slight gains in its 2018 bottom line, as growth was tempered by the decline in crude prices during the period.

On Thursday, SMC reported a consolidated recurring net income of P55.2 billion last year, reflecting a 1-percent growth from the previous year.

"Income growth for the conglomerate was tempered by the sharp decline in crude prices resulting in inventory losses for its fuels and petrochemicals during the fourth quarter of 2018," the company said in an emailed statement.

"This was compounded by forex translation losses for the year," it elaborated.

In terms of revenues, the company breached the P1-trillion mark in 2018, as its top line rose 24 percent to P1.02 trillion in the year.

This comes as San Miguel Food and Beverage Inc. saw its consolidated revenues climb by 14 percent to P286.4 billion, while its net income rose 8 percent to P30.5 billion.

Meanwhile, SMC Global Power Holdings Corp.'s consolidated revenues increased by 25 percent to P120.1 billion, with its operating income up 37 percent to P33.2 billion.

Its subsidiary Petron Corp. also saw revenues grow 28 percent to P557.4 billion, including the Malaysia business.

However, net income fell 50 percent to P7.1 billion, while operating income dropped by 32 percent to P18.9 billion.

"(M)ainly due to inventory losses incurred in November and December. Global oil production supply increased during the fourth quarter of 2018 causing a 9-week consecutive fall in international oil prices," said SMC.

The conglomerate's infrastructure unit posted a 9-percent growth in consolidated revenues to reach P24.5 billion, driven by the growth in vehicular volume at all toll roads the company operates.

SMC's subsidiaries also include San Miguel Brewery Inc., Ginebra San Miguel Inc., San Miguel Food and Beverage Inc., SMC Global Power Holdings Corp., SEA Refinery Corporation, San Miguel Holdings Corp., and San Miguel Properties Inc. — RSJ, GMA News