SMC’s businesses post strong gains

San Miguel Corp. (SMC) achieved a robust performance across most of its businesses in April, manifesting the results of the company’s efforts to increase volumes and maximize operational efficiencies in the face of the challenges of a slow economic recovery.

Operating income of San Miguel’s Philippine beer business rose 35 percent to P422 million in April, bringing year-to-date income to P1.69 billion which is three percent above a year earlier. April sales revenues increased by 30 percent to P2.25 billion from P1.74 billion last year, driven by a 30 percent gain a volumes.

In international beer operations, April sales volumes rose five percent reversing the three percent decline reported in the first quarter. Volume increases to date of 122 percent, 24 percent and 18 percent were posted in Vietnam, North China and exports, respectively. Stiff competition is still considered a threat in South China while Indonesia is battling strict government regulations in alcoholic drinks in some areas.

Liquor volume gains were also achieved by La Tondeña Distillers Inc. (LTDI) in April from a year ago. LTDI’s year-to-date net income rose 39 percent to P543 million compared to last year, driven by cost containment efforts and lower interest expense. Operating income, excluding the divested water and juice businesses, rose three percent to P895 million.

For the San Miguel Food Group, April revenues rose 14 percent to P3 billion from last year. Year-to-date sales reached P11.5 billion, 59 percent higher than the P7.24 billion in the same period in 2001. Operating income of P92 million for April and P342 million to-date are 37 percent and 63 percent above last year, respectively.

Sales revenues of San Miguel Packaging Products for the four-month period ending April totaled P4.9 billion, up five percent from last year. Volume improvements were registered in glass, plastics and cans.