PHILIPPINES: San Miguel Brewery reports solid nine months
- Nine-month operating profits rise by 9% to PHP14.65bn (US$338.2m)
- Net sales up by 7% to PHP52.1bn
- Volume sales up by 3% to 165.8m cases
- San Miguel Corp praises division's contribution to overall group results
San Miguel Brewery sales, profits rise
San Miguel Brewery has reported increases in sales and profits for the first nine months of 2011, unlike its spirits sister firm, Ginebra San Miguel, which has suffered from lower consumer demand for spirits.
San Miguel Brewery's volume sales increased by 3% for the nine months to the end of September, to 165.8m cases. Demand for the firm's beers in both its native Philippines and abroad drove the performance. Net sales rose more steeply, by 7% to PHP52.1bn (US$1.2bn).
The brewer, which is 48%-owned by Kirin Holdings but still controlled by San Miguel Corp, reported operating profits up by 9% on the first nine months of 2010, to PHP14.65bn. San Miguel Corp (SMC) does not specify net profits for its individual business division.
Still, SMC highlighted San Miguel Brewery's contribution to its overall performance so far in 2011, even as the company continues to diversify into heavy industry and power sectors. The group reserved particular praise for the "big improvements" in international beer operations.
There was a different story at SMC's spirits business, Ginebra San Miguel, which reported net sales down by 31% for the nine-month period, to PHP11.5bn. Ginebra San Miguel volumes fell by 34% to 19.2m cases, dropping the division into the red. Operating losses were PHP532m, versus profits of PHP1.2bn in the same period of 2010. SMC blamed "soft demand for liquor products", but offered no further explanation for the performance.
SMC's overall net sales for the nine months jumped by 143% to PHP393.4bn, bolsted by acquisitions. Operating profits leapt by 112% to PHP41.95bn. However, net profits fell by 6% to PHP11.95bn as the group cycled one-off gains from 2010. Recurring EBITDA, excluding such charges, jumped by 87% to PHP56.7bn.
For the company announcement, click here.
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