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By Likha C. Cuevas-Miel Reporter
SOUTHEAST Asia’s biggest food
and beverage company said Thursday that its first-half profit almost
doubled as the income of its beer and food operations rose while
financing charges eased.
In a statement, San Miguel Corp.
said its net income reached P7.88 billion in the first six months of
the year, as consolidated sales revenues grew by 9 percent to P112.7
billion over the same period.
The beer and domestic food
businesses both registered growth of 21 percent and 10 percent,
respectively.
The conglomerate’s consolidated
operating income however contracted by P8.20 billion due to the
costs incurred by its Australian unit, National Foods Ltd., which
was badly hit by a prolonged drought Down Under. While the business
registered a 10-percent revenue improvement to 967.6 million
Australian dollars (approximately P37.995 billion), higher costs
of imported juice concentrates dragged income down to 40.8 million
Australian dollars.
San Miguel’s international beer
business grew in the second quarter but its packaging and liquor
subsidiaries were still behind last year’s growth.
The conglomerate benefited from
the stronger peso as its consolidated net financing charges fell 44
percent to P2.23 billion while the proceeds from the sale of its
shares in Del Monte as well as gains from discontinued operations
jacked up consolidated net income to P7.88 billion.
San Miguel’s domestic beer
operations, which recently spun off and is poised to go public,
posted a 3-percent increase in volumes pushing revenues six percent
higher to P21.2 billion. Operating income grew 21 percent to P5.7
billion on account of stronger volumes and prudent spending.
San Miguel Brewing
International Ltd.’s second quarter operating income helped to
narrow the loss registered the previous quarter due to the
considerable gains in North China and Australia, whereas export
operations offset the lower sales in Indonesia and South China, the
conglomerate said.
Ginebra raises sales volume
Meanwhile, Ginebra San Miguel
Inc. registered a 6-percent growth in volume that on strong domestic
liquor sales and exports. San Miguel said revenues of its hard
liquor unit climbed by 3 percent to P6.32 billion due to the
Ginebra’s resurgence and GSM Blue’s strong performance.
However, the higher sales mix was
dampened by the high input costs and absorption of the 8-percent
excise tax which pushed operating income down to P382 million.
San Miguel’s food group posted
a 5-percent growth to P31.7 billion in revenues due to higher
volumes across all businesses and improved selling prices in the
second quarter. Operating income rose by 10 percent to P1.18
billion, resulting from the significant cost improvements in dairy,
processed meats and food operations.
The packaging group, another
business that would be spun off and go public, suffered from a nine
percent revenue contraction to P9.29 billion as operating income
declined to P157 million while overall demand remained sluggish, San
Miguel said.
The conglomerate expects sales
improvements in the glass, plastics and metal segments.
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