San Miguel expects revenues to hit $50b
Conglomerate San Miguel Corp. expects revenues to increase to $40 billion to $50 billion over the next five years from the current $20 billion through acquisitions and organic growth.
San Miguel president and chief operating officer Ramon Ang said in an interview at the sidelines of the company’s 125th anniversary the company remained on the lookout for acquisitions, especially in the infrastructure and energy businesses.
“We will continue to manage existing business and to pursue more acquisitions related to energy business and hope to build more infrastructure projects for our country and to provide a good telecom network,” Ang said.
Ang said the company was keen on investment opportunities in the oil and gas field projects both here and abroad. “Negotiations are on going,” he said.
On the telecom business, Ang said the company would soon launch its venture focused on mobile broadband, as well as voice, text services.
“The moment we switch on our telecom venture, it will be a better network for Filipinos. It will come out soon,” he said.
San Miguel is in talks with Australian telecommunications company Telstra Corp. for possible investment in a wireless joint venture in the Philippines. No agreement has been reached yet.
Ang declined to give the details of the negotiations.
“Telstra is big company. It will not a problem for them to invest,” Ang said.
Ang there was another room for a third player in the telecoms business in the country, which is dominated by Philippine Long Distance Telephone Co and Globe Telecoms Inc.
“Our cellphones are not working,” Ang said.
San Miguel reported an eight percent decline in net income to P16.9 billion in the first six months of 2015 from P18.4 billion yer-on-year, on lower sales from power generation and fuels businesses and foreign exchange losses.
Excluding foreign exchange losses, San Miguel said net income in the first six months of the year would have increased 15 percent to P18 billion versus P15.7 billion.
San Miguel is one of the largest conglomerates in the Philippines by revenues and total assets, with sales of about 6.2 percent of the Philippine gross domestic product in 2014.
The conglomerate is broadly exposed to the Philippine economy through its diverse range of businesses spanning the beverage, food, packaging, fuel and oil, energy, infrastructure, telecommunication, property and banking industries.
San Miguel said it was well-positioned for a significant future growth as its established businesses in beverage, food and packaging continued to provide stable cash flow, while new businesses had enabled its to expand its ability to generate higher returns.