SMB reports 10% profit growth
PHILIPPINE beer giant San Miguel Brewery Inc. booked a 10-percent year-on-year growth in its first semester net profit to P6.9 billion, driven by the double-digit expansion in domestic operations.
SMB, a crown jewel of diversified conglomerate San Miguel Corp., reported that the profit growth was driven by a 5-percent expansion in revenue to P39.8 billion in the first semester from year-ago level.
Net income from SMB’s Philippine operations rose by 18 percent, ending the first half of the year with P6.9 billion or approximating group-wide bottom-line. “In the Philippines, the company implemented brand-specific and off-take generating programs to strengthen leadership and spur consumption,” the company said.
This report suggested flat contribution from international operations, which the statement did not discuss. A source familiar with the liquor industry said Indonesia’s ban on the selling of liquor products in convenience stores and small store formats could have gnawed on SMB’s international operations, Indonesia being the largest consumer market in Southeast Asia.
Based on earlier reports from The Jakarta Post, the Ministry of Trade banned the sale of alcohol in small stores starting April 16, saying that beverages with alcohol content of 1 to 5 percent could only be sold in supermarkets and hypermarkets.
Earlier reports indicated that SMB had posted a net profit of P3.3 billion in the first quarter. The recent report implied that net profit for the second quarter alone was around P3.6 billion.
Article continues after this advertisementSMB is the largest producer of beer in the Philippines with six production facilities strategically located across the Philippines and a highly developed distribution system serving about 450,000 on-premise and off-premise outlets nationwide.
It has brewery and sales operations in Hong Kong, Indonesia, Thailand and Vietnam as well as two breweries in China through its wholly owned subsidiary, San Miguel Brewing International Ltd. (SMBIL). SMBIL also exports beer products to more than 30 countries and territories in North America, South America, Eastern and Northern Europe, Africa, the Middle East, Australia and Asia. Doris Dumlao-Abadilla
