Revenues for the first two months of the year are seen to reach $39 million or an increase of seven percent from the previous year’s level. Aside from volume growth, rationalized sales, distribution systems and continuing cost management helped fuel the growth in SMC’s international beer operations.
SMC’s China operations recorded a seven percent sales improvement, primarily due to intensified marketing strategies. North China operations reported an 18 percent expansion over last year. One of the conglomerate’s plants located in the Guangdong province realized a record sales growth of 57 percent year-on-year.
SMC said Hong Kong has likewise contributed a four percent increase in trade turnover as it recovered from the slump caused by the outbreak of the SARS (Severe Acute Respiratory Syndrome).
SMC’s Vietnam operations reported a turnaround in its financial results during the first two months as it recorded an 83 percent volume expansion in February.
SMC’s local beer business, however, continues to be the group’s bread and butter, bringing the conglomerate’s profits for the first two months of the year beyond the P1 billion mark or almost 80 percent of its first quarter earnings and an increase of 16 percent from the previous level.
With this impressive performance, SMC expects beer volume to increase at a double-digit pace in the first quarter due to favorable sales trending and strong product off-take.
SMC, Southeast Asia’s largest food and beverage group sells nine of every 10 bottles of beer in the Philippines with domestic sales accounting for a fifth of the company’s total revenues.