PHILIPPINES: Tax hikes drag down San Miguel Brewery in Q1
- Q1 operating profits fall 9% to PHP4.8bn
- Net sales drop 4% to PHP17.5bn
- Volumes down 12% to 47.8m cases
- Domestic volumes fall 14% after tax hike
San Miguel Brewery and Ginebra San Miguel are subsidiaries of San Miguel Corporation
San Miguel Brewery has been hit by tax rises in the Philippines with volumes and profits falling in its first quarter.
Operating profits slid by 9% to PHP4.8bn in the three months to the end of March, the brewing subsidiary of San Miguel Corporation said late last week. Sales were down by 4% to PHP17.5bn, while volumes dropped by 12% to 47.8m cases.
The company blamed "new excise tax rates" in the Philippines for dragging its volumes down. Taxes were hiked by the government in January as part of a new Sin Tax reform bill, in a bid to raise an extra PHP40bn (US$973m) in revenue.
Ginebra San Miguel, the spirits subsidiary of San Miguel Corporation, also suffered from the tax rises. Operating losses widened to PHP416 for the quarter, after sales fell 15% to PHP3.1bn. Volumes slipped by 22% to 4.67m cases in the three months.
Meanwhile, San Miguel Brewery last week confirmed that the Philippine Stock Exchange has approved its previously announced move to delist from the exchange. The delisting is due to happen on Wednesday (15 May).
This report comprises of high level market research data on the Philippines beer industry, published by Canadean. The report covers total market (on- and off-premise) and includes valuable insight a...
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