San Miguel net down on acquisitions

San Miguel Corp. (SMC), the Philippine conglomerate known internationally for its trademark beer, was likely to have posted lower net income in 2001 as it expanded its role in soft drinks and food. An…

San Miguel Corp. (SMC), the Philippine conglomerate known internationally for its trademark beer, was likely to have posted lower net income in 2001 as it expanded its role in soft drinks and food. Analysts said costs from a series of acquisitions, including taking over the local operations of Coca-Cola and Pop-Cola, would overshadow robust sales in 2001. But contributions from the acquisitions should help boost consolidated earnings in 2002. The company, whose produce accounts for some 2.5% of the Philippines gross domestic product, posted recurring net profit of PHP 7.5 billion (US$ 146.2 million) in 2000. It was scheduled to release its 2001 results on or around 20 February. Market consensus for SMC“s 2001 net profit is PHP 7.2 billion, according to the Multex Estimates Directory, rising to PHP 8.2 billion this year. Analysts estimated 2001 net profit would be slightly lower, between PHP 6.2 billion and PHP 6.7 billion. They saw 2002 net profit at between PHP 7.7 billion and PHP 8.7 billion. They cited costs from a spate of acquisitions and sluggish domestic demand for some key products as the main reasons for the weaker performance.