Philippine conglomerate San Miguel Corp. has announced that it registered a 19% fall in net income for the first six months of the year to Pso 2.41 billion from Pso 2.98 billion for the year-ago perio…
Philippine conglomerate San Miguel Corp. has announced that it registered a 19% fall in net income for the first six months of the year to Pso 2.41 billion from Pso 2.98 billion for the year-ago period. The company“s consolidated revenue went up 11% to Pso 41.9 billion from the year-ago Pso 37.7 billion. However, cost of sales and operating expenses increased by 14% due to higher raw material costs. The group“s beer operations in the Philippines suffered a 6% decline in sales volume, while domestic beer sales revenues went up a mere 3% to Pso 12.1 billion as no price increase was implemented this year. Consequently, operating income slid 10% to Pso 1.85 billion from Pso 2.05 billion a year ago. San Miguel“s international beer operations suffered setbacks too as the company intensified spending on distribution and brand development programmes in its overseas markets. The firm reported sales volumes have recovered in Indonesia and Southern China and said it expects them to pick up further as investments in distribution infrastructure and advertising and promotional activities begin to pay off. In addition, the company“s plastic, crown and container glass operations in Indonesia and China tripled San Miguel“s contributions in revenues to Pso 193 million.