Wednesday, 15 July 2009

San Miguel Brewery posts P4.86 B net profit in H1, up 4%

JAMES A. LOYOLA
Manila Bulletin
http://mb.com.ph/articles/210891/smb-posts-p486-b-net-profit-h1-4

San Miguel Brewery Inc. (SMB), the brewery unit of conglomerate San Miguel Corporation, reported a 4 percent improvement in net income after tax for the first half of the year to P4.86 billion.

During the firm’s annual stockholders’ meeting yesterday, SMBI president Roberto Huang said that first semester 2009 net sales revenue rose 4.2 percent year on year to P24.8 billion. SMB sales volumes reached 86.0 million cases.

Operating income amounted to P7.6 billion in the first semester, a 6 percent increase from the previous year. Huang said earnings growth was driven by continued cost management efforts and more stable raw material prices.

Meanwhile, the SMBI Board of Directors approved a cash dividend of P0.11 centavos per share to all shareholders of record as of July 28, 2009 payable on August 10, 2009. SMBI held its first-ever stockholders meeting on Monday.

Earlier this year, the brewery completed a record-breaking P38.8 billion bond offering — the largest ever debt offering by a corporate issuer in the Philippines.

Proceeds from the bond offering were used to purchase the domestic beer brands and brewery land assets from San Miguel Corporation.

SMBI chairman and SMC president Ramon Ang said they expect to complete SMBI’s acquisition of SMC’s international beer business “hopefully in a couple of months.”

He added that the acquisition can easily be funded by SMBI from its internal cash flow as well as loan facilities that are being extended by banks. “SMBI has strong financial capability,” Ang said.

Huang said SMBI also intends to grow its domestic beer business despite the market leadership of its brands noting that new opportunities are opening up as more women now drink beer and a new breed of beer drinkers have been born out of young urban professionals who have more discretionary incomes.

He said SMBI is also looking to increase its sales by expanding its coverage in areas that are currently under-served.

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