San Miguel Yamamura triples income in 2002

San Miguel Yamamura Ball Corp., (SMYBC), the country’s lone aluminum can manufacturing plant, more than tripled its net income in 2002 to P306 million to lead the diverse SMC conglomerate in terms of earnings performance last year.

The company is a strategic alliance among San Miguel Corp., with a controlling 60 percent stake, and Nihon Yamamura Glass Co. of Japan and Ball Corp. of the US with a combined 40 percent interest.

As the only aluminum can maker and the pioneer in the production of two-piece cans and ends in the beverage industry, SMYBC continued to build on last year’s gains as it posted strong first quarter results this year, with operating income surging another 70 percent to P88.1 million.

"The company’s strong profit showing was at the back of improved operations, lower cost of raw materials and enhanced working capital management," SMC chairman and chief executive Eduardo Cojuangco Jr. said.

He added that with the company’s increased focus on the domestic market, with softdrinks and beer as base markets, SMYBC will expand and tap other ready-to-drink beverages such as juices with alternative can variants and sizes to be pursued to meet the market demand.

In the first three months of 2002, SMYBC reported a 12 percent growth in domestic sales and a 29 percent expansion in exports, with strong orders of two-piece cans and ends propelling the company’s overall sales up by 14 percent and increased revenues of 18 percent to P538.7 million, Cojuangco said.

Along with lower raw materials costs and strict cost management, SMYBC improved its operating margin from 11 percent to 16 percent during the period, translating to the 70 percent gain in operating income.

SMYBC is a unit under SMC’s packaging group, one of the conglomerate’s most consistent profit-making ventures, with several facilities for glass, metal, plastics and paper packaging located in the country and abroad (China and Vietnam).

Last week, its glass manufacturing concern, San Miguel Yamamura Asia Corp. – a joint venture between SMC and Nihon Yamamura Glass Co Ltd. – said it will pump in about P1.1 billion more for the expansion and upgrading of its bottle forming plant in Imus, Cavite plant. – Conrado Diaz Jr.