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By Euan Paulo C. Añonuevo Reporter
San Miguel Corp. posted
double-digit profit growth in 2006 because of strong overseas sales
and effective cost-control measures.
In a statement to the Philippine
Stock Exchange, SMC reported a 17-percent increase in its net income
to P10.6 billion in 2006 over company earnings last year.
Consolidated net sales revenue grew by 10 percent to P250 billion.
The strong peso partially offset
a 28-percent increase in net financing charges, which San Miguel
incurred from the consolidation of National Food Ltd. (NFL).
NFL’s full year consolidation,
in addition to savings generated from cost containment measures,
also allowed the company to increase its operating profits by 18
percent to P20.6 billion.
San Miguel’s domestic beer
operations’ posted a 15-percent increase to P9.52 billion in
operating income because of improved margins and prudent management
of manufacturing costs.
While 2006 volumes came in below
the previous year’s performance when demand was affected by
reduced consumer spending, revenues reached P39.9 billion.
In its international beer
operations, 2006 volumes rose 8 percent with
corresponding sales revenue of
$299.2 million—5 percent more than in 2005.
This was attributed to a strong
performance in San Miguel’s operations in China and its export
business. Consolidated operating income reached $4.36 million as a
result of operational efficiencies and sustained cost control
measures.
Meanwhile, San Miguel’s hard
liquor subsidiary, Ginebra San Miguel Inc.,
posted a 17-percent volume
improvement in 2006 mainly because of strong sales of GSM Blue and
Gran Matador. Sales revenue rose by 21 percent to P12.4 billion but
higher cost of molasses and packaging materials resulted in a lower
operating income of P773 million.
San Miguel Food Group posted a 5
percent increase in sales revenue to P64.0 billion from 2005 despite
lost sales opportunities brought about by Supertyphoons
“Milenyo” and “Reming” in the fourth quarter.
However, the company said “
performance was nonetheless encouraging as volume growth came from
both existing and new businesses.” Operating income increased by
38 percent to P2.83 billion as breaks in raw materials prices and
fixed cost management complemented improvements in operational
efficiencies.
In Australia, National Foods
Limited generated sales revenue of AU$1.84 billion, which was 8
percent above the previous year. Dairy volumes, on the average, were
almost flat despite improved cheese sales while juice volumes rose 3
percent amid aggressive competitor activities. Operating income
ended at AU$170 million, 10 percent more than 2005.
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