SMB profit up 20%

SAN MIGUEL Brewery Inc. saw a 20-percent net profit rise to P3.3 billion in the first quarter as its domestic business expanded despite the imposition of higher excise taxes.

SMB, part of the San Miguel Corp., posted an 8-percent growth in consolidated revenues to P18.9 billion, the company said in a statement.

Sales volume in the local market expanded by 7 percent to 40.9 million cases. This supported an increase in revenue to P16.2 billion versus the P13.8 billion registered in the same period last year.

For the Philippine operations alone, net income rose by 29 percent year-on-year to P3.2 billion.

SMC president Ramon S. Ang on Friday said that he was happy with SMB’s “very stable” beer business.

After the stockholders meeting of San Miguel Pure Foods Co. Inc. on Friday, Ang said SMC had no plan to sell its controlling interest in beer giant San Miguel Brewery to strategic partner, Kirin Holdings of Japan, but could rethink this stance in case of an “outrageous” offer.

SMC currently owns 51 percent of the local beer brewer while Kirin holds 49 percent.

SMB is the largest producer of beer in the Philippines with six production facilities strategically located across the country and a highly developed distribution system serving about 450,000 outlets nationwide.

It also has brewery and sales operations in Hong Kong, Indonesia, Thailand and Vietnam, as well as two breweries in China. It exports its beer products to over 30 countries.

SMC, through its majority-owned subsidiary, Ginebra San Miguel Inc., is also the largest gin producer by volume in the world.