SMC reports 12% profit hike to P6.7B

Food and beverage giant San Miguel Corp. said yesterday its pre-tax earnings increased by a double-digit growth of 12 percent to P6.7 billion in the first half of this year, as the contributions of two recent acquisitions — Coca Cola Bottlers Philippines and Pure Foods Corp. — were felt starting the second quarter.

In a company statement, SMC said the healthy growth in the first semester was buoyed by the continued favorable results from all its business lines, now boosted by CCBPI and Pure Foods.

Consolidated net sales rose by a strong 35 percent to P57.3 billion, with the food business gaining an 18 percent revenue growth; beverage, six percent; and packaging, five percent.

Operating income, meanwhile, went up 25 percent to P5.1 billion, while earnings before interest taxes, depreciation and amortization (EBITDA) increased by 12 percent.

CCBPI contributed sales of P6.7 billion in May and June while Pure Foods turned in P3.9 billion for the entire second quarter.

During the regular meeting of the company’s board of directors yesterday, the SMC board said it has authorized management to "continue discussions, under certain prescribed parameters," with the Atlanta-based The Coca Cola Co. and their joint venture unit CCBPI for a joint acquisition of the entire stake of RFM in Cosmos Bottling Corp.

CCBPI is a joint venture between SMC and TCCEC, with the Cojuangco-controlled conglomerate owning a bigger share of 65 percent.

"The discussions of the company with TCCEC and RFM are continuing and no agreements have been reached with either TCCEC or RFM as to price, structure or other details," SMC corporate information officer Ferdinand Constantino said. – Conrado Diaz Jr.