050907: SMC's 1Q net income up 100%

Revenue boost  comes largely from sale of STAKE IN coca-Cola Bottlers

By Honey Madrilejos-Reyes

Reporter

SOUTHEAST Asia’s largest food and beverage company San Miguel Corp. (SMC) booked a net profit of P4.33 billion for the first quarter of 2007, up 100 percent from P2.17 billion in the same period last year. The higher net profit was boosted by a nonrecurring income the company booked from the sale of its stake in Coca- Cola Bottlers Phils. Inc. (CCBPI). Excluding the revenue contribution from CCBPI, sales revenue of SMC reached P55.4 billion, up 7 percent in the same comparable period. Consolidated operating income of P3.8 billion was 24-percent lower, trimmed by external factors continued to affect the performance of unit Ginebra San Miguel Inc., particularly the eight-percent increase in excise taxes implemented last January. SMC’s packaging company also suffered from the cyclical downtrend for glass bottle requirements while National Foods Ltd., SMC’s dairy and juice subsidiary in Australia, absorbed cost increases as a consequence of the continent’s prolonged drought. Meanwhile, domestic beer operations’ posted an operating income of P2.70 billion, up 13 percent in the same comparable period as domestic beer sales benefited from lower raw material and fuel prices. Revenue finished at P10.5 billion.  International beer operations, on the other hand, recorded higher volumes from January to March with corresponding sales revenue of $68.3 million. SMC’s liquor unit Ginebra San Miguel Inc. reported a 7-percent rise in volumes from 2006 and revenue of P2.98 billion. Sales of major brands picked up during the quarter, with GSM Blue, Vino Kulafu and Gran Matador generating double-digit growths. San Miguel Food Group posted consolidated sales revenue of P14.7 billion in the first period, practically at par with 2006. Improved efficiencies, lower raw material prices and fixed cost management helped carry operating income higher by seven percent at P540 million.  National Foods Ltd. of Australia generated revenue of AU$496 million, 12 -percent higher than last year’s with volume improvement achieved in all categories.

 

 

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