• Brewery sees H1 net sales rise by 7% to PHP35.6bn (US$839.6m)
  • Division's operating profits increase by 8% to PHP10.2bn
  • Spirits division struggles in period, operating losses total PHP186m
San Miguel Corp praises beer division in H1

San Miguel Corp praises beer division in H1

San Miguel Corp may have its sights fixed on investment in the infrastructure and power sectors, but its original beer business still helped to boost profits in the first half of 2011.

San Miguel Brewery, which is 48%-owned by Kirin Holdings, has reported net sales up by 7% for the six months to the end of June, to PHP35.6bn (US$839.6m). Volumes rose by 5%, led by demand outside of the the group's native Philippines, San Miguel Corp (SMC) said today (15 August).

Operating profits at San Miguel Brewery also rose, by 8% to PHP10.2bn. SMC said that the figures show that its "traditional businesses" continue to be a "major contributor" to sales, even as the group diversifies into other sectors.

San Miguel Brewery's operating profits represented close to one third of SMC's overall group operating profits, which rose by 136% for the first-half, to PHP31.5bn. Meanwhile, bolstered by investments in infrastructure and energy, SMC's net sales leapt by 168% to PHP263.3bn, with net profits up by 72% to PHP10.8bn. 

The company's food business also contributed to growth, with operating profits up by 8% to PHP3bn and net sales climbing by 11% to PHP42.3bn.

Spirits was the weak link in the half-year. SMC's spirits division, Ginebra San Miguel, slid to operating losses of PHP186m, versus profits of PHP862m in the same period of 2010. Net sales sank by 27%, to PHP8.2bn, with volume sales down by 30%.

For the company figures, click here. For the results press release, click here.