SUMMARY
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MANILA, Philippines – San Miguel Brewery Incorporated (SMB), the Philippines’ biggest beer company and a unit of San Miguel Corporation (SMC), reported over the weekend that its first quarter net income jumped 20% to P3.3 billion ($74.04 million) from the P2.7 billion ($60.5 million) it posted last year.
San Miguel Brewery has recovered from the impact of higher excise tax, which affected the company’s operations last year, said Ramon Ang, SMC president and CEO.
Consolidated revenues for the first 3 months of 2015 also improved by 8% to P18.9 billion ($424 million) compared to the P17.6 billion ($394.4 million) posted in the same period in 2013.
To boost domestic operations, SMB said it implemented new campaigns and consumer and trade programs to strengthen brand equity and increase consumption.
Despite the imposition of higher excise taxes, volumes grew by 7% to 40.9 million cases.
With higher volumes, revenues from domestic business reached P16.2 billion ($363.4 million) against the P13.8 billion ($309.6 million) in 2014.
Net income from Philippine operations also rose by 29% to P3.2 billion.
SMB is looking to diversify after it recently completed the acquisition of non-alcoholic beverage assets of Ginebra San Miguel Incorporated for nearly P400 million ($8.97 million).
The acquisition is in line with the company’s strategy to capitalize on the opportunities in the rapidly growing non-alcoholic beverage industry.
It will enable SMB to venture into the segments of bottled purified water, carbonated energy drinks, non-carbonated tea and fruit juices in ready-to-drink bottled and powdered formats in the domestic market.
SMB is a joint venture between San Miguel, with 51% stake, and Japan’s Kirin Holdings Co. which owns the remaining 49%.
On Friday, Ang said SMC may consider selling its stake in beer unit to Kirin for what he deemed an “outrageous price.”
Ang though refused to say how much that “outrageous offer” would be, but said San Miguel Brewery (SMB) has a value of $6 billion (P276.42 billion).
Kirin earlier said it would seriously consider upping its stake if parent San Miguel decided to sell. – Rappler.com
$1 = P44.57
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