PHILIPPINES: San Miguel Brewery sees H1 profits rise but volumes fall

• H1 operating profits rise 6% to PHP10.8bn (US$258m)
• Net sales climb 4% to PHP36.9bn (US$880m) 
• Volumes dip 3% to 111.6m cases
• Domestic volumes also drop 3%

San Miguel Brewery has reported a slight rise in H1 profits despite a fall in domestic volumes.

Operating profits rose by 6% to PHP10.8bn (US$258m) in the first six months to the end of June compared to a year earlier, the Philippine brewer announced today (13 August). Net sales increased over the same period by 4% to PHP36.9bn. But domestic volumes, which make up about three-quarters of total volumes, fell back by 3%.

International volumes stayed flat, but revenue for the brewer's international operations posted double-digit growth because of higher volumes in Hong Kong, Indonesia and Thailand.

Meanwhile, liquor and soft drinks maker Ginebra San Miguel, part of the same group, saw H1 volumes drop by 15%. Net sales dropped by 12% to PHP7.2bn (US$172m) but operating profits increased by 16%. Volumes for its flagship Ginebra San Miguel brand rose by 13%, the company said.

San Miguel Brewery and Ginebra San Miguel are owned by the Philippines' largest company, San Miguel Corporation, which today posted a 31% first-half gain in net profits.

San Miguel Brewery makes up about 10% of the corporation's total sales and Ginebra San Miguel about 2%.

In July, San Miguel Corp confirmed it was still in talks with its joint-venture partner Kirin Holdings over overship of San Miguel Breweries.

San Miguel Corp's share price was down 0.8% towards the end of trading today.

To read the company's official statement, click here.