In a disclosure to the Philippine Stock Exchange (PSE), SMC also forecast a positive operating income during the same period.
The company said it expects the bulk of its growth revenue to come from its Greater China operations, which currently account for more than two-thirds of SMC’s international beer volume.
"We anticipate China to register volume growth in excess of 20 percent for the first six months of 2004," SMC said.
SMC is bullish on the performance of all its international businesses and said it expects this sector’s revenues to account for 30 to 40 percent of total company revenues, a significant improvement from its current 15 percent contribution to total revenues.
SMC is also projecting stronger growth in the second half of the year.
"Sales are expected to further increase in the summer months and the same strong results are expected in China," an SMC official said.
"Profit performance for the period is expected to show a significant improvement from last year as operations recover from the SARS (severe acute respiratory syndrome)-stricken days of 2003," the SMC executive said.
SMC noted that outside China, Australia and Indonesia are the two markets that performed extremely well for the corporation. Volumes in these countries increased significantly and contributed to the company’s positive results.
SMC recently announced the groundbreaking of its non-alcoholic beverage facility in South Vietnam, as part of the company’s continuing expansion in the Asia-Pacific region.
San Miguel Vietnam Co., Ltd. will be set up in a 100,000-square meter property in Bien Hoa City, Dong Nai Province, which SMC has leased for 40 years from Amata (Vietnam) Co. Ltd.
It will operate a multi-product flexi-line that will manufacture high quality beverages, including bottled water and fruit-based drinks using locally sourced raw materials.
San Miguel Vietnam will be SMC’s fifth facility in the country. Already in operations are San Miguel Brewery Vietnam Ltd. in Nha Trang, San Miguel Phu Tho Packaging Co. Ltd. in Ho Chi Minh City, San Miguel Yamamura Hai Phong Glass in Hai Phong City, and TTC Vietnam in Binh Duong. TTC Vietnam is one of the largest organized feed and hog farming operations in Vietnam.
SMC also recently opened its new beverage manufacturing facility in Indonesia. The new company, to be known as PT San Miguel Indonesia Foods and Beverages, is 85-percent owned by San Miguel and 15-percent owned by PT Delta Djakarta Tbk, San Miguel’s brewery in Indonesia. SMC is also involved in the manufacturing and marketing of processed meats in the country through PT Purefoods Subah Indah, a joint venture with the Hero Group of Indonesia. Its Farmhouse and Vida hotdogs and sausages, cold cuts, burgers and other processed meats also enjoy a considerable market share in Indonesia’s processed meats industry.
The company also operates a plastics plant in Indonesia through PT San Miguel Sampoerna Packaging Industries, which produces and markets plastic crates and pallets.
SMC said more expansion activities are scheduled within the year in Australia, Vietnam, China and Malaysia. Before the end of the year, another facility will be put up in Indonesia that would expand its beer and hard liquor operations.
In Thailand, SMC earlier completed the acquisition of the brewery assets of Thai Amarit Brewery Ltd. for 3.9 billion Thai bath or about $95 million. The purchase gives it a strong foothold in the lucrative Thai beer market, currently the biggest in Southeast Asia.