SMC reports P4.3-billion net income in first 8 months

San Miguel Corp. (SMC) has sustained its buoyant growth as its consolidated net income in August rose 84 percent to P434 million over last year’s P236 million. This gain brings to P4.3 billion SMC’s net income for the first eight months of the year, representing a 35 percent increase over last year.

Cited for the increase were the strong results from La Tondeña, the turnaround in SMC’s international beer operations and sustained improvements in its packaging business.

An increase of 29 percent was posted in SMC’s August consolidated net sales which amounted to P8 billion following double-digit revenue growth across all of its businesses. Revenues from beverages gained by 18 percent packaging by 25 percent, food by 17 percent and coconut oils by more than four times. On a year-to-date basis, sales revenues reached P57.4 billion, up 16 percent from the same period in 1999.

With La Tondeña and the international beer operations continuing to surpass last year’s results, SMC’s August operating income rose by 17 percent to P441 million and by 22 percent to P4.8 billion on a year-to-date basis.

International beer sales volume for August surpassed July’s four million cases record and rose 40 percent to 4.3 million cases from the 3.1 million cases sold in August last year. With this healthy growth, revenues grew by 25 percent to $25.1 million and operating income by 64 percent to $1.5 million. For the first eight months, international beer posted revenues of $153.7 million and operating income of $1.7 million, a reversal of the $7.9 million loss last year.

Operating income of SMC’s Philippine beer operations increased by three percent to P311 million for August and by six percent to P2.9 billion for the first eight months. Sales revenues for the first eight months rose seven percent to P19.5 billion.

J. Boag & Son Ltd., the Australian brewer which SMC acquired this year, posted a 30 percent increase in sales volume and registered AS$11.6 million in revenues for the first two months after SMC completed the acquisition in July.