The Philippine-based Cosmos Bottling Corp has reported that its net income has fallen for the first quarter of the year. However the group, which is owned by Coca Cola Bottlers Philippines Inc, said it remained upbeat about the full year.

"Cosmos...remains upbeat that 2003 will be another profitable year on account of expected savings from synergies with the Coca Cola Beverage Group," the company said in a statement. First quarter figures were apparently held back by a shortage of bottles and higher production costs.

Net income reached 59 million pesos ($1.1 million) for the quarter. Although comparative figures were not released, last year it reported net income of 413.36m pesos for the first quarter. However, volumes and turnover both increased, the company said.

"Posting a three percent volume growth and two percent increase in net revenues in the first quarter versus last year, Cosmos is looking at double-digit growth in volume and in operating income for 2003," the company said.

Both Cosmos and Coca Cola Bottlers, are subsidiaries of the San Miguel food and beverage group, and together command around 80% of the country's soft drink market.