According to some analysts, higher raw material costs and the funding of overseas expansion in China and Indonesia could affect 1996 profits at San Miguel Corp. (SMC) of the Philippines.
A poll of st…
According to some analysts, higher raw material costs and the funding of overseas expansion in China and Indonesia could affect 1996 profits at San Miguel Corp. (SMC) of the Philippines. A poll of stock brokerages completed recently showed the food and beverage giant was expected to report a 2.88% fall in profits to 5.225 billion pesos in 1996 from a net profit of 5.380 billion pesos in 1995. Inclusive of one-time gains, San Miguel had a profit of 5.835 billion pesos in 1995. The group“s 1996 profits were expected to fall despite expectations that sales would rise by about 7% to 85.088 billion pesos from 79.200 billion pesos in 1995. But with stable prices for raw materials and higher revenues in view of prospects of higher demand for food products, analysts also predicted that 1997 profits would rise. Average numbers from the poll showed expectations that profits this year will rise by about 16% to 6.049 billion pesos. The group has raised 550 million pesos from the issue of long-term commercial papers. SMC will use the proceeds to finance various phases of its modernisation programmes as well as its existing operations. The latest papers issued by the SMC are part of the 3.0 billion pesos worth which it was allowed to float by the national Securities and Exchange Commission.