E-Malt.com News article: 2116

The Philippines: San Miguel Corporation (SMC), Southeast Asia's largest food and beverage group, driven by strong revenue growth across all its businesses, posted on January 29 consolidated operating income of P14.4 billion in 2003, 13% higher than the P12.7 billion registered in 2002. Consolidated net sales revenue grew 9% to P148.6 billion last year from P136.1 billion in 2002, with strong volume growth of 14% in beverage, 10% in packaging and 4% in the food group.

Consolidated net income reached P7.37 billion ($132.8 million), up 7% following robust growth in domestic beer, improved performance of the food group and strong fourth quarter gains in international beer particularly J. Boag and South China. SMC’s EBITDA (earnings before interest, taxes, depreciation and amortization) for 2003 reached P20.3 billion, 8% better than 2002, while earnings per share last year improved at P2.60 compared to the 2002 level of P2.49. San Miguel Beer Philippines sustained its sales momentum of the past seven quarters, resulting in a 13% increase in 2003 revenues to P30.6 billion, and a 12% improvement in volume that reached its highest level since 1997. Operating income grew by 20% to P5.5 billion.

Beer international recovered from SARS-related difficulties in the first half and posted an operating income of US$10.27 million in the second semester, 24% better than 2002. Consolidated operating income in 2003 amounted to US$ 1.46 million. Volume in the second half of last year grew by 12%, while total-year volume posted a 4% improvement. Total sales revenue was up 1% to US$235 million, buoyed by favorable results Indonesia, Vietnam and J. Boag in Australia. Ginebra San Miguel Inc.’s sales volume grew by 6% over 2002, while revenue reached P12 billion, also up 6%. Operating income was slightly higher at P2.7 billion while net income was slightly below last year’s P1.65 billion.

Consolidated net revenue of the Coca-Cola Beverage Group reached P41.3 billion, 17% above 2002. With its continuing efforts to build on and put in place the Going-to-Market sales and distribution program, the group’s operating income settled at P2.52 billion.

San Miguel Packaging Products’ sales revenue rose 13% to P17.3 billion. All SMPP’s businesses, except two-piece aluminum cans, composites and paper registered volume improvements resulting in a 10% overall volume increase. With tight cost management and improved efficiencies, operating income grew by 30% to P2.5 billion.

The San Miguel Food Group rallied in the latter part of the year as poultry selling prices improved significantly. The group delivered P2.04 billion in operating income, 9% higher than last year’s P1.9 billion.

San Miguel Corp is The Philippines' biggest company and has breweries in Hong Kong, China, Australia, Indonesia and Vietnam.


30 January, 2004