SMBI marketing campaigns show gains as profit climbs 20% to B in Q1

San Miguel Brewery Inc. (SMBI), the beer subsidiary of San Miguel Corporation, reported a 20 percent jump in consolidated net income to billion in the first quarter of 2015 from the P2.7 billion earned in the same period last year on strong beer consumption.

In a statement, SMC said it posted consolidated revenues of billion for the first quarter of 2015, an 8 percent improvement from revenues of billion in the first three months of 2014.

In its Philippine operations, SMBI implemented new campaigns and consumer and trade programs to strengthen brand equity and increase consumption.

Despite the imposition of higher excise taxes, volumes grew by 7 percent to 40.9 million cases. With higher volumes, revenues reached billion, 17.4 percent higher against the billion in 2014.

Philippine operations’ net income rose by 29 percent, ending the first quarter with billion.

SMBI is a partnership between SMC and Kirin Brewery of Japan which had acquired almost half of SMC’s stake in the local brewer.

SMC President Ramon S. Ang said SMC is not considering the sale of its remaining stake in SMBI, which he said is valued at $6 billion, unless they are offered a “ridiculously high” price for it.

San Miguel Brewery reported that its consolidated net income reached

billion last year, 7.9 percent higher than 2013 despite the imposition of higher excise taxes in its Philippine operations.

The firm said it posted consolidated sales revenues of billion pesos, a 5 percent improvement from 2013, buoyed by a strong rebound in domestic beer volumes to 172.5 million cases.

SMBI added that improved collections also resulted in a 6 percent decline in consolidated accounts receivables.

In the Philippines, SMB implemented new campaigns and relevant consumer and trade programs focusing on relatively small but many activations at grassroots level to boost equity and beer consumption of SMB brands.

Overseas, SMB introduced Cerveza Negra and San Mig Light in draught formats to further improve volumes in the international market. Exports were likewise pushed to bring the Philippine iconic beer to the overseas market.

SMB has recently acquired sister company Ginebra San Miguel’s non-alcoholic beverages assets and properties as part of plans to diversify its revenue sources since it is operating in a mature beer market.