SMC declares 35¢ per share cash dividend

Food and beverage giant San Miguel Corp. (SMC) has declared a cash dividend of 35 centavos per share, payable on Nov. 6.

In a disclosure to the Philippine Stock Exchange, SMC said those entitled to receive the cash dividend are shareholders on record as of Oct. 13.

SMC posted a net income of P4.36 billion in the first six months of the year, an increase of 15 percent from the same period last year, on lower raw material costs, stringent cost containment measures and the significant contribution from Australian dairy giant National Foods Ltd. which was acquired last year for $1.5 billion.

Consolidated net sales sustained double digit growth, rising 21 percent to P121.6 billion.

Australian fruit juice firm Berri Ltd. and National Foods contributed revenues of A$.19 billion and operating income of A$5.6 million to SMC’s financial results in 2005.

SMC has been expanding overseas to maintain its growth momentum with a broader brand and geographic portfolio. In addition to the acquisition of National Foods last year, SMC undertook the full buy-out of Berri Ltd., which was followed by a SMC joint venture for the purchase of Del Monte Pacific.

SMC likewise acquired King’s Creameries and Guolene Packaging Companies of Malaysia in 2005.

All these businesses have access to growth markets that should help SMC gain further inroads into markets that include not only those in China, Indonesia, Hong Kong, Vietnam and Australia but also Thailand, Malaysia, Singapore and even India.

SMC said its overseas operations should deliver 40 percent of group revenue this year, up from 35 percent in 2005 and just 10 to 13 percent in 2002 to 2004.

In June, SMC launched its snack foods business with the introduction of seven variants of E-Aji DipSnax, the first and only snack brand with a dip in every pack.

SMC is expected to post a 30-percent growth in its revenues this year from P227 billion in 2005.

The conglomerate is relying on its overseas operations to continue growing after saturating its home market for drinks, processed food and dairy.

The company’s operations account for about 3.4 percent of Philippine gross domestic product and contribute about 5.6 percent of state tax revenues.