Forex losses yank down San Miguel H1 earnings

CONGLOMERATE San Miguel Corp. said its income plunged 26 percent during the first half of the year on foreign-exchange (forex) losses.

The company reported net income ended lower at P26.1 billion versus P35.3 billion last year. Recurring net income, which excludes forex losses, ended at P27.6 billion, 21 percent higher than last year’s P22.8 billion.

First-half revenues rose 20 percent to P393.4 billion, following higher sales from its fuel and oil, infrastructure, core beverages, food and packaging businesses. Consolidated operating income reached P53.4 billion, 10 percent higher than last year, it said.

“In addition to the higher sales sustained by most of the businesses, which resulted to improved margins, fixed costs were also better managed throughout the Group,” the company added.

Liquor unit Ginebra San Miguel Inc. had revenues reaching P10.1 billion, 20 percent higher than last year. Operating income rose 44 percent to P594 million, while net income almost doubled to P265 million. Revenues of San Miguel Pure Foods Co. Inc. rose 5 percent to P55.9 billion due to higher volumes and favorable selling prices of its poultry, fresh-meats and value-added meats businesses. Operating income grew 24 percent to P4.5 billion, while net income amounted to P3.1 billion, up 26 percent.