Philippine food and beverage conglomerate San Miguel Corp. said its five-month net profit rose 30% to Pso 2.6 billion (US$ 60.3 million) from Pso 2 billion a year earlier on strong performances by al…
Philippine food and beverage conglomerate San Miguel Corp. said its five-month net profit rose 30% to Pso 2.6 billion (US$ 60.3 million) from Pso 2 billion a year earlier on strong performances by all divisions, particularly packaging and liquor. Operating income rose 14% to Pso 3.2 billion from Pso 2.8 billion, while operating margins increased to 11.05% from 10.64% a year earlier. The group“s consolidated sales climbed 10% to Pso 34.5 billion from Pso 31.4 billion, as sales volume climbed 7%. For May alone, San Miguel said sales volume was 15% higher. San Miguel“s domestic beer posted an operating income of Pso 2.2 billion on sales of Pso 13.2 billion, up 14% and 11%, respectively. International beer operations had a five-month operating loss of US$ 1.05 million, albeit sharply lower than last year“s US$ 9.53 million. In May, international beer operations registered an operating income of US$ 633,000. San Miguel operates breweries in China, Indonesia and Vietnam. This month San Miguel acquired Australia“s beer brewer J. Boag & Son, snaring more than 96% of the shares in the company. San Miguel said it would compulsorily acquire the remainder of the shares after shareholders with 96.63% of Boag shares accepted its share offer. “Based on this trend, San Miguel expects to wipe out the operating losses in the next two months,” the company said. Domestic beer-sales volume in the five-month period rose 2% as a widened distribution network offset weak consumer spending. International beer volume climbed 3%. San Miguel“s liquor unit, La Tondena Distillers Inc., posted an 89% increase in net profit to Pso 652.4 million on a double-digit growth in liquor, bottled water and juice-drinks sales volume. La Tondena registered revenue of Pso 6.1 billion between January and May, up 31% from Pso 4.6 billion. Sales volume of liquor increased 19%, bottled water rose 62% and juice drinks climbed 17%. La Tondena“s operating income increased to 1.2 billion pesos in the period from 853 million pesos a year earlier. San Miguel“s packaging division posted operating income of Pso 874 million in the period, up 77% from the previous year“s Pso 494 million, thanks to higher demand for glass bottles, moulds and plastics, a price increase, lower raw-materials prices and reduced operating costs. Revenue reached Pso 5.8 billion, up 12%. The company said revenue at its food division rose to Pso 6.6 billion from Pso 6.3 billion. It said sales volume and prices of poultry products increased as a result of the government“s stricter import regulation, while sales of animal feed rose on the company“s decision to maintain prices, despite higher corn and soya costs.