SMC bares 8% income hike to P1.67B in Q1

San Miguel Corp. said yesterday its consolidated net income rose eight percent from a year ago to P1.67 billion in the first three months of this months despite higher financing charges.

Operating income rose by 31 percent to P2.38 billion from P1.81 billion as a result of SMC’s continued improvements in distribution, productivity enhancements, and sustained efforts to control costs.

The company said higher financing charges were due to higher loan interest rates and comparatively lower levels of dollar placements than the year before due to SMC’s purchases of J. Boag & Son and Sugarland Beverage Corp. which have contributed significantly to SMC’s strong results.

SMC posted an eight percent sales volume increase in its international beer operations. The biggest contributors to this increase were SMC’s operations in North China that had a 52 percent gain to 1.2 million cases and PT Delta Djakarta’s 29 percent volume improvement. These improved volumes pushed revenues to $50.8 million, up six percent from $48.1 million last year.

Operating income from its local beer operations rose three percent to P1.34 billion from year-ago levels.

La Tondeña’s operating income rose 12 percent to P781 million, while its consolidated sales revenues increased by 13 percent to P3.6 billion. Volume and revenue growths were posted in the non-liquor segment with bottled water volume up 15 percent and revenue ahead by 28 percent, while ready-to-drink juice volume gained five percent and revenue 12 percent higher.

The San Miguel Food Group achieved a 145 percent leap in operating income to P142 million, and a 20 percent improvement in revenues to P4.6 billion. The feeds and poultry business‘ operating income was 179 percent higher at P134 million as the contained entry of cheap chicken imports resulted in more stable and higher prices of poultry products. Operating income of Monterey Foods Corp. rose 25 percent to P69 million from P56 million, while revenue gained seven percent to P818 million.

Consolidated sales of San Miguel packaging Products (SMPP) increased by 12 percent to P3.8 billion