SMB net income up 20% to 3.3 B in Q1
San Miguel Brewery Inc. ( SMB), the beer subsidiary of diversified conglomerate San Miguel Corp., increased its profits by a fifth in the first three quarters of the year due to higher volumes sold.
SMB said net income rose 20 percent to P3.3 billion in the first three months of the year from P2.7 billion during the same period last year.
Consolidated revenues, likewise, surged eight percent to P18.9 billion in the first quarter from P17.6 billion a year ago.
For its Philippine operations, SMB said the imposition of higher excise taxes did not do much damage to the company as volumes managed to grow seven percent year-on-year to 40.9 million cases.
With the higher volumes, the firm said net income for its Philippine operations in the first quarter rose 29 percent to P3.2 billion while revenues reached P16.2 billion.
“The company implemented new campaigns and consumer and trade programs to strengthen brand equity and increase consumption,” SMB said.
In a briefing with reporters on Friday, SMC president and chief operating officer Ramon S. Ang said his group is open to selling its stake in SMB to Japan’s biggest beverage maker Kirin Holdings Co. Ltd. but only if the latter makes a “ridiculous” and “outrageous” offer.
Ang did not provide an amount on what he thinks is a “ridiculous” and “outrageous” offer, but said SMB is currently valued at about $6 billion. Kirin has a 48-percent stake in SMB. Keisuke Nishimura, senior director of the board of Kirin earlier said the firm is keen on raising its stake in SMB.
SMB is engaged in the manufacture and sale of fermented and malt-based beverages.
The firm earlier this year was able to secure its bondholders’ consent to engage in the business of manufacturing, selling, distributing and dealing in any and all kinds of beverage products.
As such, SMB is expanding into the non-alcoholic beverage business as this particular product has a larger share of consumption and is growing at a much faster pace than the alcoholic category.