GSMI declares P105.3-M cash dividend

Ginebra San Miguel Inc. (GSMI), the hard liquor unit of food and beverage giant San Miguel Corp., has declared a cash dividend of P0.375 for each share held by stockholders on record as of Feb. 18.

GSMI said the cash dividend, amounting to a total of P105.3 million, will be paid on March 11.

The company earlier announced that its unaudited net profit in 2004 increased by only two percent last year to P1.68 billion as higher production costs squeezed bottomline gains.

GSMI’s operating income went up nine percent to P2.96 billion last year from P2.71 billion despite increases in the costs of direct materials, packaging and distribution. The increase was attributed to intensified marketing activities and the eight percent rise in the volume of liquor sold.

"A greater share of the market was gained (in the second half of 2004) through product portfolio expansion, product and packaging improvements, aggressive selling and intensified advertisement and promotions," GSMI chairman Eduardo M. Cojuangco Jr. said in a report to the company’s board.

Cojuangco expressed confidence that GSMI can sustain the gain in its market share this year with the introduction of new liquor products and an increase in production capacity.

As it positions itself as a diversified alcoholic beverage company, GSMI is expanding its production facilities to make them at par with international standards.

Late last year, Ginebra formed a joint venture with Thai Life Group to build a distillery and bottling plant in Thailand. It also acquired a 40-percent stake in CNT Wine and Liquor Co., a subsidiary of Thai Life.

Last December, Ginebra raised the prices of its liquor products to recoup increased production costs and the additional taxes be implemented at the start of January.