SMB profit up 8% to P13.5B in 2014 despite sin tax hike

MANILA, Philippines - San Miguel Brewery Inc. (SMB), the flagship unit of diversified conglomerate San Miguel Corp., said it booked a higher consolidated net profit last year despite the imposition of higher excise taxes in its Philippine operations.

SMB’s consolidated net income in 2014 reached P13.5 billion, an eight-percent improvement year-on-year, the company said in a statement yesterday.

Consolidated sales revenues grew five percent to P79 billion last year, buoyed by a strong rebound in domestic beer volumes to 172.5 million cases

In the Philippines, SMB said it implemented new campaigns and relevant consumer and trade programs focusing on relatively small but many activations at grassroots level to boost equity and beer consumption of the company’s brands.

Abroad, SMB said it introduced Cerveza Negra and San Mig Light in draft formats to further improve volumes in the international market.

Exports were likewise pushed to bring the Philippine iconic beer to the overseas market, the beer company said.

“Improved collections also resulted in a six percent decline in consolidated accounts receivables,” SMB said.

SMB is engaged in the manufacture and sale of fermented and malt-based beverages, particularly beer of all kinds and classes.

The firm recently secured its bondholders’ consent to engage in the business of manufacturing, selling, distributing and dealing in any and all kinds of beverage products.