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SOUTHEAST Asia’s largest food and beverage conglomerate disclosed
to the Philippine Stock Exchange on Tuesday that its recently
spun-off beer unit posted higher after-tax income last year due to
stronger consumer demand.
San Miguel Brewery Inc. (SMBI), which is slated
to offer its shares for the first time this year, recorded a net
income of P8.015 billion, a 9.4-percent growth year on year. Net
sales rose by 8.8 percent to P44.139 billion on the back of an
almost 8 percent growth in volume.
Last January, the brewery’s parent San Miguel
Corp. (SMC) disclosed that sales were stronger due to the higher
demand from consumers as a result of a more robust economy.
Moreover, the company boosted sales and brand recognition further by
launching various promotions like payday specials, “higantes”
festivals and the regular sponsorship of the annual Red Horse
Muziklaban and Oktoberfest.
SMBI also made television commercials starring
Chinese martial arts star Jet Li, sponsorships of the 2007 World
Pool Championships and a series of concerts by international artists
like Beyoncé Knowles, Akon and Vertical Horizon, to further promote
San Miguel Beer brands.
The brewery had planned to sell its about 1.548
billion common shares at P1 each or almost 10 percent of the
outstanding shares to the public for the first time and list with
the local bourse this quarter. However, its latest initial public
circular documents filed with the Securities and Exchange Commission
on Monday showed SMBI has yet to set a specific date for its maiden
share offering.
Of the total shares up for sale, 154.88 million
primary common shares would be issued by SMBI while SMC would sell
1.39 billion of its shares in its subsidiary at a price of P9.50 to
P16.30 each. SMBI expects to raise between P14.714 billion and
P25.246 billion to help fund its parent firm’s venture into the
power, mining, infrastructure and utilities industries.
SMBI’s share sale would be followed by the
maiden share offering of San Miguel’s packaging business and its
planned sale of hybrid bonds later this year. At least $500 million
is expected from the bond sale, which would be added to the start up
fund worth P35 billion for SMC’s foray into the heavy industries
and pay outstanding obligations.
SMC told the local bourse that listing of SMBI
and its packaging unit is “part of its broader plan to list all of
the company’s operating units on the exchange.”
-- Likha C. Cuevas-Miel
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