Strong Q3 boosts SMC profits by 6% to P4.84B in 9 mos

Food and beverage giant San Miguel Corp. (SMC) reported a 15 percent growth in its third quarter income to P1.79 billion, buoyed by sustained favorable performance across most of its businesses with double digit-gains achieved by international beer operations, the Coca-Cola Beverage Group (CCBG) and its packaging unit.

With the strong operating results for the quarter, SMC's consolidated net income for the Jan.-Sept. period this year rose six percent toP4.84 billion. Consolidated revenues likewise went upto P108.1 billion or an increase of nine percent over the previous year's level while operating income was up one percent at P9.5 billion.

For the third quarter alone, consolidated sales revenues reached P35.9 billion, up by nine percent from the same period a year ago. Operating income slightly went up to P3.33 billion.

With the containment of the Severe Acute Respiratory Syndrome (SARS), SMC's international beer operations achieved significant recovery, posting an 11 percent consolidated volume growth in the third quarter. Revenues increased by 11 percent to $68 million, driving third quarter operating income nine percent higher to $4.9 million. Year-to-date sales revenue reached $167.6 million.

Local beer revenues likewise improved, rising 10 percent to P21.9 billion while operating income jumped 21 percent to P4.1 billion.

Among its subsidiaries, Ginebra San Miguel Inc., its hard liquor posted a five percent gain in sales revenue during the first nine months of the year to P8.51 billion.

Sales of CCBG amounted to P9.6 billion in the third quarter or an increase of 16 percent. For the nine-month period this year, revenues grew 13 percent to P29.6 billion while operating income amounted to P1.63 billion.

The packaging group's sales revenue in the third quarter exceeded year-ago levels by 14 percent to P4.3 billion. Its glass and plastic businesses registered volume increases of nine percent and 64 percent, respectively. Operating income surged 50 percent to P778 million.

On a year-to-date basis, revenues increased by 17 percent to P13.3 billion while operating income jumped 66 percent to P2.22 billion.

San Miguel PureFoods group pumped in revenues of P10.4 billion in the third quarter, up eight percent from last year. Year-to-date consolidated revenues amounted to P29.5 billion. With improvements in selling prices, particularly for poultry and dairyproducts, operating income in the third quarter improved significantly to P481 million from the P258 million in the first half. Operating income on a year-to-date basis amounted to P739 million.

SMC expects to hit its 2003 net profit target of P7 billion or 5.6 percent higher than the company‚s year ago net income of P6.63 billion. Analysts, however, are expecting SMC's net income to reach between P7.5 to P7.9 billion by yearend unless the local economic and political environment worsen.

With the strong gains for the first nine months of the year, SMC expects to sustain its growth momentum approaching the peak holiday season.