San Miguel's net income surges 80% in 2016
Sale of telecom assets offsets foreign exchange losses
CLIFF VENZON, Nikkei staff writer
MANILA -- San Miguel, the Philippines' largest listed company by sales, on Thursday said net income surged 80% to 52 billion pesos ($1.04 billion) last year, fueled by a jump in earnings at its brewery and refinery.
Last year's profit included an 11.8 billion pesos one-off gain from the sale of its telecom assets to PLDT and Globe Telecom, which also cemented the two providers' duopoly in the country's telecoms sector. Excluding 8.9 billion pesos in foreign exchange losses, San Miguel's net income more than doubled to 61.2 billion pesos, the diversified conglomerate said in a press release.
San Miguel a decade ago expanded into infrastructure and other industries to counter slowing sales at its traditional food and beverage businesses.
Last year, San Miguel Brewery's net income jumped 31% to 17.7 billion pesos on the back of record revenues of 97.2 billion pesos, up by 18% on the previous year, thanks to "strong marketing campaigns and favorable economic conditions."
Gin producer Ginebra San Miguel logged a profit of 361 million pesos, a turnaround from a 386 million loss the previous year.
Net profit at San Miguel Pure Foods rose 26% to 6 billion pesos due to the higher price of chicken and improved margins.
Oil refinery and fuel retailer Petron's net profit increased 73% to 10.8 billion pesos driven by improved sales in the Philippines and Malaysia and cost-control measures.
Without providing exact figures, the company said operating income at its power and infrastructure groups also improved.