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SMC, Ayala book robust profits

San Miguel Corp. and Ayala Corp., two of the country’s largest conglomerates, reported strong earnings in the first quarter, on the strong performance of core businesses.

Food-to-power conglomerate San Miguel Corp. said Thursday net income surged 122 percent in the first three months to P13.53 billion from P6.01 billion posted in the same period last year, bolstered by higher income from operations.

San Miguel said first-quarter revenues rose 1 percent to P159.6 billion, while income from operations climbed 38 percent to P22.82 billion.

Beer and food manufacturing units posted double-digit growth in net income.  San Miguel Brewery Inc.’s profit rose 23 percent to P4 billion while San Miguel Pure Foods Co. Inc.’s income jumped 34 percent to P1.21 billion.

Ginebra San Miguel Inc. registered a P54-million net income in the first quarter, a reversal from P29-million net loss a year ago as net sales rose 7 percent to P3.93 billion.

The group’s infrastructure unit booked net sales of P4.69 billion, up by 16 percent from a year ago, on high traffic volume at South Luzon Expressway, Tarlac-Pangasinan-La Union Expressway, Star Tollway and Skyway Stage 1 and 2.

San Miguel Global Holdings Corp., the company’s power generation unit, reported a 1-percent hike in net sales to P19.93 billion, while income from operations jumped 25 percent to P597 million.

Meanwhile, Ayala Corp. said net income grew 15 percent in the first quarter to P5.8 billion, as most businesses performed well with largest growth coming from real estate, power generation and automotive businesses.

“As we conclude our medium-term plan this year and embark on a new five-year growth strategy, we are encouraged by the upbeat first-quarter results of our businesses. We believe the Philippines continues to be fundamentally strong, and we expect most of our businesses to continue growing at a healthy pace,” Ayala president and chief operating officer Fernando Zobel de Ayala said.

The conglomerate said the first-quarter results were driven by equity earnings contribution from business units, which reached P7.2 billion, up by 11 percent from 2015.

Ayala Land Inc.’s and Manila Water’s equity earnings contribution increased 16 percent and 13 percent, respectively.

Ayala Automotive rebounded in the first three months, with equity earnings contribution expanding fivefold on the back of strong sales of Isuzu, Honda and Volkswagen brands.

The group’s recent venture into power and transport also provided additional boost to the group’s positive first-quarter performance.

AC Energy sustained its positive earnings trajectory, generating a net income of P250 million in the first quarter as its power projects achieved more efficient operating levels.

AC Energy now has 650 megawatts in attributable capacity across its conventional and renewable investments.

AC Infrastructure recorded net earnings of P23 million in the first quarter, following the systems takeover of Light Rail Transit Line 1 in September 2015.  AC Infrastructure currently has three public-private partnership projects in its  portfolio, including the  4-kilometer Muntinlupa-Cavite  Expressway, the Beep ticketing system and  the extension and operations and maintenance of LRT1.

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