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INVESTMENT gains from the sale of J.Boag & Sons and a
portion of its stake in the packaging business drove San
Miguel Corp.’s (SMC) net profit to P11 billion in the
first quarter, up 360 percent from the P2.4-billion net
profit recorded in the same period last year.
Of the amount, P6.9 billion represented
one-time gains and P4.1 billion involved recurring net
income. Taking out the gains, the company still posted a
strong first-quarter performance.
From January to March this year, its
consolidated revenues amounted to P39.2 billion, up 11
percent over last year, on the back of stable results
across the majority of its businesses.
A BusinessMirror source said SMC
implemented a 10-percent price increase on its food
products in March to compensate for higher prices of raw
materials. Last month, the source added, the company
increased its beer prices by 9 percent.
“They have no plans of raising their
prices any time soon, but they said they will continue
to monitor the situation,” the source said.
For the first quarter, SMC’s
consolidated operating income amounted to P3.85 billion,
up 40 percent versus a year ago. Income from continuing
operations was at P5.52 billion, more than five times
the amount in the first quarter of 2007 as better
efficiencies and tighter cost management across all
operating units complement revenue-building efforts.
Carrying the momentum of 2007’s strong
performance, San Miguel Brewery Inc.’s net income surged
37 percent to P2.5 billion, driven by sales volume
growth of 18 percent and successful cost-management
efforts. Sales rose 13 percent year-on-year to P12.3
billion.
The international beer operations posted
9 percent higher sales volumes in the first quarter with
robust sales particularly in Indonesia, Thailand,
Vietnam and beer exports. Combined with the improving
performance of
North China and
Hong Kong, net sales reached $63.1 million, up 40 percent over last
year’s.
Meanwhile, revenues of Ginebra San
Miguel Inc. grew 14 percent to P3.4 billion on account
of 10-percent increase in volumes over the previous
year. Demand was especially strong for Gran Matador and
GSM Blue, while more aggressive distribution initiatives
and promo activities helped push volumes for flagship
brand Ginebra San Miguel. As a result, year-to-date net
income of P130 million was sharply higher by 93 percent
versus last year’s.
San Miguel Food Group’s consolidated revenue rose 19 percent
to P16.6 billion. Poultry, flour, feeds and value-added
segments performed solidly with most businesses
registering higher volumes and selling prices. Further
contributing to revenue growth was higher volumes for
the Food Group’s Vietnamese feeds and live piggery
operations.
San Miguel Packaging Group’s first quarter performance
improved significantly with revenue growing eight
percent to P4.96 billion, reflective of the recovery in
demand for glass in the beer, healthcare and
pharmaceutical industries. Operating income of P347
million was a record turnaround from last year’s P25
million.
For this year, SMC expects another year of positive growth
driven by strong consumer demand for its brands and a
more focused industry-specific growth strategy. The
company is cognizant of the rising commodity price and
fuel cost that will put pressure on the bottomline,
requiring more vigilant management of efficiencies and
cost. |
