SMC tops in financial mgm’t, boosting shareholder value

A survey by FinanceAsia magazine, one of the foremost sources of information on financial markets in the region, has distinguished San Miguel Corp. (SMC) as the company with the strongest commitment to enhancing shareholder value among Philippine firms.

The 2002 poll covering the performance of leading companies in 10 countries in Asia likewise cited San Miguel as the best local company in financial management. Both SMC rankings were an improvement from the survey’s 2001 results wherein the company was named third in those management attributes.

Based on votes from institutional investors and equity analysts, SMC also emerged in the survey as one of the best managed companies in the country, and among those most committed to corporate governance and investor relations.

UBS Warburg, a leading global financial services firm, has similarly cited San Miguel’s efforts at boosting shareholder returns following SMC’s recent investments in the food and carbonated drinks businesses. A research by UBS Warburg’s local unit noted that "in the short history (since 1998) of Eduardo M. Cojuangco Jr.’s management, the company has made six acquisitions," and that these investments have started bearing fruit.

"SMC’s track record shows the company’s ability and speed at concluding even the more complicated deals," UBS Warburg further observed. It also noted San Miguel’s increased working capital efficiency, improved positioning and better logistics as plus factors for SMC.

In another survey of the widely-circulated regional publication Far Eastern Economic Review (FEER) last year, San Miguel likewise stood out for its overall leadership, highest quality products, long-term vision, financial soundness and innovation in responding to customer needs.

SMC has kept its edge over rivals, FEER said, because of the company’s more efficient distribution network after Cojuangco’s return as chairman and chief executive officer in 1998, and the company’s benefiting from "the art of selling the basics."