San Miguel Yamamura Packaging Group (SMYPG), the packaging unit of food and beverage conglomerate San Miguel Corp., said its operating profit nearly tripled to PHP 782 million in the 1H 2008 due to hi…
San Miguel Yamamura Packaging Group (SMYPG), the packaging unit of food and beverage conglomerate San Miguel Corp., said its operating profit nearly tripled to PHP 782 million in the 1H 2008 due to higher sales and cost-cutting measures implemented by management to boost efficiency. In a statement, SMYPG said income from operations jumped 164% during the period from only PHP 296 million a year earlier as sales rose 7% to PHP 9.91 billion. “We are encouraged that sales trends for our products continue to improve, particularly for our biggest segments, glass and plastics, which represent 42% of our total packaging revenue,” said San Miguel president Ramon Ang, who is also chairman of SMYPG. He said sales of glass products grew 40% on strong demand from domestic customers and exports to Australia and the Middle East. “Despite economic pressures, we have sales momentum coming from both internal and external customers. We“ve also tapped customers in overseas markets. This is important as we anticipate continued pressures from a weakened economy and a challenging competitive environment,” Ang added. The packaging unit accounts for around 12% of San Miguel“s sales. In the 1Q 2008, it contributed 9% to group operating income. Earlier in 2008, San Miguel completed the sale of a 35% stake in the packaging business to Nihon Yamamura Glass, a leading Japanese manufacturer of glass and plastics packaging, for PHP 5.3 billion. The move is expected to allow both parties to combine their production and marketing expertise in developing new metal, carton and plastics packaging for beverage makers in the Asia Pacific region. Nihon Yamamura also has a presence in China and Taiwan.