SMC’s carton biz posts 18% revenue hike

Food and beverage giant San Miguel Corp. said its carton business registered revenues of P2.42 billion last year, up 18 percent from 2004, driven by an aggressive sales and marketing strategy and improved sourcing of raw materials.

In terms of volumes, production of corrugated cartons and paperboards also increased by three percent. Operating income grew 82 percent to P194 million.

The paper carton business contributed 12 percent to total revenues of San Miguel Packaging Products Inc. (SMPP). Along with glass and metal closures, paper carton is one of SMPP’s biggest revenue earners.

SMPP’s overall management direction toward diversifying its markets and aggressively pushing for sales paid off as it saw an increase in its external customers, including companies in the electronics industry. The company is also hoping to tap small and medium enterprises.

The firm was able to arrange contract agreements with paper mills for more competitive supply of liners and corrugating medium.

SMPP has two local carton plants – the San Miguel Rengo Packaging Corp. and Mindanao Corrugated Fibreboard, Inc. It also has a plant in Malaysia with the recently acquired San Miguel Packaging Malaysia Operations (formerly Guolene Packaging Industries Bhd.).