PHILIPPINES: San Miguel Brewery FY profits jump
- Net profits up by 17.4% to PHP12.2bn (US$288m)
- Net sales rise by 6.3% to PHP71.9bn
- Operating profits increase by 10% to PHP20.5bn
San Miguel Brewery toasts good year
San Miguel Brewery has reported a strong rise in full-year profits, backed by higher beer sales.
Better consumer demand for beer in both San Miguel Brewery's native Philippines and in key overseas markets propelled the firm to a 6.3% rise in net sales for the 12 months to the end of December, to PHP71.9bn (US$1.7bn). Price rises on the firm's beers also lifted sales, it said in a note to the Philippines stock exchange today (7 February).
On the back of solid sales momentum, the group reported a 10% increase in operating profits, to PHP20.5bn. Net profits jumped by 17.4% on 2010, to PHP12.2bn, said the firm, without providing further detail.
Separately, San Miguel Brewery announced that it will issue PHP20bn in bonds in order to refinance debt. The bonds will have a term of between five and ten years, said that group, which is 48%-owned by Kirin Holdings and controlled by San Miguel Corp.
Its full-year sales and profits rises come in spite of ongoing tough times at the firm's beer unit for Hong Kong and southern China. Yesterday, auditors warned that San Miguel Brewery Hong Kong is struggling to remain financially viable. For 2011, it reported net losses of HKD68.6m (US$8.8m), albeit down from losses of HKD774m in 2010.
For San Miguel Brewery's trading update to the Philippines stock exchange, click here.
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