The Philippines’ largest food and beverage company, San Miguel Corporation (SMC), has announced consolidated operating income of P10.5bn (US$205.9m), 32% higher than the previous year’s P7.9bn.
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The group said consolidated net income without the newly acquired Purefoods and Coca-Cola Bottlers Phil. (CCBPI), would have reached P7.3bn, up 7% from the previous year. With the acquisitions and their resulting short-term dilutive effect, net income amounted to P6.5bn against P6.8bn in 2000. EBITDA was at P18.6bn, up 44%.
SMC broke the P100bn revenue mark to post P121.6bn in consolidated net sales for the year 2001, up 48% from P82.3bn in 2000. Revenues grew across all businesses despite an increasingly competitive and difficult environment, with a 48% increase for beverages, 90% for the food group and 1% for packaging. This performance also reflects the consolidation of Purefoods and CCBPI.
Revenues of the San Miguel Food Group (SMFG) were 90% higher at P32.7bn driven by strong volumes across all products lines and improved poultry prices, as well as the consolidation of Purefoods. Operating income jumped 269% to P2.1bn from P576m in 2000. Purefoods contributed P12bn in sales (April to December 2001) and P1.2bn in operating income.
San Miguel Packaging Products (SMPP) posted revenue growth of 1% to P13.6bn. However, operating income declined by 17% to P1.6bn as the division was hard placed in effecting price increases given intense competition among local and foreign packaging suppliers.
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By GlobalDataOperating income for the domestic beer operations was flat at P4.1bn due to higher raw material costs and lower volumes. Other costs, however, were contained through tighter management of resources and higher efficiencies. Sales revenue declined by 1% from 2000 levels. Domestic beer volumes declined by 3% due to a slow down in consumer spending and weak farm incomes. SMC purposively corrected trade inventory levels and clamped down on accounts receivables (AR) bringing down AR levels significantly from P7.4bn at the start of the year to P5.4bn by year end.
Beer International achieved a 31% increase in operating income to US$8.8m from the previous year’s US$6.7m. This improvement was driven by a better product mix, continued rationalization of sales efforts and distribution systems, and cost management programs. Sales revenue improved by 5% to US$237.6m.
Revenues of La Tondena Distillers went up by 8% to P15.3bn. Operating income was 2% higher at P2.92bn versus P2.87bn in 2000 while net income increased by a hefty 39% to P1.9bn from P1.35bn, including the gains on the sale of the non-liquor business.
Sales volume of Coca-Cola Bottlers Philippines, Inc. (CCBPI) from May to December 2001 reached 258.9 million cases. Sales revenue amounted to P21.1bn with an operating income of P1.1bn. The Company is focusing on programs to improve selling and distribution systems and operating efficiencies particularly on assets usage, power, fuel and breakage.
In early 2001, SMC bought back 65% of CCBPI from Coca-Cola Amatil of Australia. Last month, it finalized the acquisition of Cosmos Bottling Corp. through its subsidiary Philippine Beverage giving SMC the indisputable lead position in the domestic beverage market. Redefining the entire soft drinks business will be the main objective for the year as the Company moves to maximize synergies at all levels of the CCBPI, Cosmos, Phil. Beverage and SMC organizations.
