Ginebra San Miguel has posted a sharp fall in net profit for 2006.

The Philippines-based drinks company, which is the spirits subsidiary of San Miguel Corp. said yesterday (10 April) that net profit for the full-year slid by 24% year-on-year to PHP280.7m (US$5.84m), due in part to rising taxes, financial charges and interest expenses.

The profit slide came despite a 21% leap in sales for the year, to PHP12.43bn.

While the cost of sales leapt by 32% thanks in part to a rise in VAT rates, interest expenses rose to PHP1.16bn from PHP1.09bn in 2005, and financial charges were up to PHP345.1m from PHP279.5m.

San Miguel Corp. is set to deliver its full-year results tomorrow.