Ginebra San Miguel posts flat growth in 2003

Ginebra San Miguel Inc.(GSMI), the hard liquor subsidiary of food and beverage giant San Miguel Corp., posted a flat growth in its earnings last year due to a generally weak gin market during the last three quarters.

In a statement issued yesterday, GSMI said its net income in 2003 merely matched the prior year’s level of P1.65 billion.

However, GSMI reported a six percent rise in net sales revenues and consolidated sales volume last year, buoyed by an impressive growth in exports. The company exported 887,000 cases of liquor in 2003 from only 90,000 cases a year earlier.

Consolidated sales volume rose to 31.7 million cases last year from 29.8 million cases in 2002, while net sales revenues went up to P12 billion from P11.4 billion.

"GSMI chalked up higher sales volume on a surge in export volumes in the third and fourth quarters of 2003 and a steady growth in local volumes despite the difficult business conditions that affected Ginebra San Miguel sales in the last three quarters," GSMI said.

GSMI’s liquor operations in Southern Philippines improved significantly following the strong performance of its Vino Kulafu brand and a reduction in its fixed costs.

Vino Kulafu volumes grew 33 percent year-on-year on improved product distribution, aggressive advertisement and promotion, and higher farm incomes.

Volumes in Northern Philippines, meanwhile, grew steadily, boosted by the strong performance of the GSMI Frasco and Frasquito brands.

GSMI said it expects near-term growth to remain steady, as new products are launched.

Long-term growth, on the other hand, will continue to be very promising as GSM is now expanding into Thailand, Malaysia, Indonesia, Vietnam, Taiwan, China and Australia.