Food and beverage conglomerate San Miguel Corp. saw its net profits expand by 16 % to P1.06 billion in the first two months of the year. In a statement, San Miguel said its domestic beverage business, particularly beer sales, steered the company’s profit growth from the previous year’s P918 million, ABS CBN posted on March 29.

The company is confident its strong performance for the first two months would be sustained for the rest of the year on the back of expected higher consumer spending. “During the first two months of the year, San Miguel has already achieved close to 80 percent of its first-quarter earnings in 2003. Clearly it is evident that the company is well poised to take advantage of additional consumer spending given an election year,” San Miguel said.

This year’s two-month operating income amounted to P2 billion, 32% higher from the P1.5 billion in earnings during the same period last year. San Miguel recorded consolidated net sales revenues to P24.4 billion in January and February this year, or 14-percent higher from the previous year’s level. In real terms, corporate volume growth is at 5 %.

“This is attributable to the robust trade turnovers of the beverage business. Consolidated volume growth of San Miguel’s beverage business recorded a 13-percent year-on-year expansion. Leading the pack is San Miguel’s domestic beer division with volume growth estimated at close to 30 %,” the company said.

Last week, San Miguel said it recently started directly exporting poultry products to Japan. The company signed an agreement with Japanese meatpacking company Yonekyu Corp. for the export of 28 metric tons of deboned cut-up chicken parts to Japan. San Miguel is negotiating for a third shipment of chicken exports with Yonekyu.

30 March, 2004