Philippine Business Today

San Miguel Corp., Southeast Asia's largest beverage and food group, said Tuesday first-half net profit soared 199 percent to P19.7 billion, including gains from asset sales, backed by strong beer sales.

The company said the reported earnings had one-off gains of P5.67 billion from discontinued operations in the first quarter as well as proceeds from the listing of its domestic beer unit and sale of stake in a property firm.

Profit without the extraordinary gains reached P14.5 billion, which, according to San Miguel president and chief operating officer, Ramon Ang, is "significantly higher" than last year. San Miguel, valued at over P85 billion, recorded total revenues of P79.8 billion, up 9 percent year-on-year.

"Faced with challenging economic conditions affecting consumer spending behavior and escalating input costs, we're particularly encouraged by these results," said Ang. "Growth was achieved across almost all of our reporting segments in the first six months of 2008.

Ang added that the company's businesses benefited from several cost-saving measures implemented.

Consolidated operating income amounted to P8.21 billion, 28 percent higher than what was recorded in the comparable year-ago period.

Volumes of the company's local beer-making unit San Miguel Brewery Inc. rose 7 percent, resulting in a 9-percent increase in revenues to P23.8 billion. Its six-month operating income stood at P7.16 billion, up 25 percent.

San Miguel’s international beer operations posted a 4.0-percent growth in sales volume in the first semester, with robust sales in Indonesia and Thailand. Revenues reached $136 million, up 30 percent over the year-earlier level.

Liquor subsidiary Ginebra San Miguel Inc. finished the period with a 17-percent jump in revenues. Net income grew 5 percent to P243 million.

Despite skyrocketing commodity and fuel prices, San Miguel's food group under San Miguel Pure Foods Co. had a consolidated revenue of P33.7 billion, up 16 percent year-on-year. Feeds and poultry segments delivered solid performances and coffee turned in better margins.

San Miguel packaging group's total revenue rose 8.0 percent to P10.1 billion, reflecting strong demand for plastics and glass. Operating income climbed 156 percent to P758 million.

Next >