Philippines' San Miguel doubles first quarter 2007 profit

San Miguel’s first quarter 2007 income has reached almost $91 million, after the sale of its stake in Coca Cola Bottlers Philippines (CCBPI) to Coca Cola.

Excluding the revenue contribution from CCBPI, sales revenue reached $1.1 billion or seven percent higher than 2006. Consolidated operating income of $80.3 million was 24 percent lower than last year as external factors continued to affect the performance of Ginebra San Miguel which was weighed down by the absorption of an eight percent increase in excise taxes effected in January 2007. SMC’s packaging company suffered from the cyclical downtrend for glass bottle requirements, while National Foods, SMC’s dairy and juice subsidiary in Australia absorbed cost increases as a consequence of the continent’s prolonged drought.

Domestic Beer Operations’ operating income reached $57 million, 13 percent higher than last year as the business benefited from lower raw material and fuel prices. Revenue finished at $222 million.

International Beer Operations recorded two percent higher volumes in the first period with corresponding sales revenue of $68.3 million. North and South China operations together with Vietnam, Australia, Thailand, and export volumes outpaced last year’s performance–the result of highly focused and purposive selling programs at the outlet level.

Ginebra San Miguel reported seven percent higher volumes from 2006 and delivered revenue of $63.1 million. Sales of major brands picked up in the quarter, with GSM Blue, Vino Kulafu, and Gran Matador sustaining double-digit growths.

San Miguel Food Group posted consolidated sales revenue of $311 million in the first period, at par with 2006. Improved efficiencies, lower raw material prices and fixed cost management helped carry operating income higher by seven percent at $11.3 million.

National Foods in Australia generated revenue of $413 million, 12 percent higher than last year with volume improvement achieved in all categories.