PHILIPPINES: San Miguel reports strong Q1 and eyes rising costs
San Miguel Corporation has reported a strong start this year with first quarter consolidated revenues of P39.2bn (US$916m), up 11% over last year, driven by good results across the majority of its businesses.
Consolidated operating income of P3.85bn was up 40% and net income of P11.0bn was over four times that of the same period last year.
Excluding one time gains on the sale of investments, net income was P4.1bn more than double 2007.
San Miguel Brewery's net income surged 37% on last year to P2.5bn, driven by sales volume growth of 18% and "successful cost-management efforts", the company said. Sales rose 13% on year to P12.3bn.
The international beer operations posted 9% higher sales volumes in the first quarter with robust sales particularly in Indonesia, Thailand, Vietnam and beer exports. Combined with the improving performance of North China and Hong Kong, net sales reached $63.1m, up 40% over last year.
Revenue of Ginebra San Miguel, its liquor division, grew 14% to P3.4bn on account of 10% increase in volumes over the previous year. Net income of P130m was sharply higher by 93% versus last year.
Looking ahead, San Miguel said it expects another year of positive growth driven by strong consumer demand for its brands and a more focused industry-specific growth strategy.
"The company is cognizant of the rising commodity price and fuel cost that will put pressure on the bottomline, requiring more vigilant management of efficiencies and cost," it said.
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