San Miguel Brewery Inc. posts 10% growth in revenues in H1

MANILA, Philippines - San Miguel Brewery Inc. (SMB), the beer subsidiary of diversified conglomerate San Miguel Corp., posted a 10 percent growth in earnings in the first half of the year on the back of higher revenues.

The company, which operates breweries in the Philippines and four other Asian countries, recorded a net income of P6.9 billion against the P6.3 billion registered in the same period last year.

Revenues, meanwhile, rose to P39.8 billion, five percent higher than the P37.7 billion generated in the same period last year.

“In the Philippines, the company implemented brand-specific and off-take generating programs to strengthen leadership and spur consumption,” the company said in a report.

From its Philippine operations, SMB’s net income rose 18 percent, ending the first half of the year with P6.9 billion.

This developed as its Hong Kong subsidiary, San Miguel Brewery Hong Kong Ltd. registered a consolidated loss of HK$13.9 million during the first half of the year compared to HK$23.1 million recorded in the same period last year, according to a disclosure filed by the Hong Kong-listed subsidiary.

“The Group’s consolidated turnover was at HK$272.3 million, down 23.5 percent from the same period in 2014. Gross profit was HK$111.9 million, with a gross profit margin of 41.1 percent,” it also said.

The Hong Kong-listed subsidiary has earlier issued a profit warning to shareholders following the expiration and non-renewal of its distribution agreement with Anheuser-Busch, the world’s largest brewer with a 25 percent global market share.

SMB said it would continue to develop and promote existing and new products.

“The company will continue its current efforts in developing and promoting products under its own principal brands as well as the new premium/craft brands being distributed by the company,” it said.

Anheuser-Busch has selected as its exclusive distributor Jebsen Beverage Co Ltd, a Hong Kong-based distribution and marketing company that distributes imported premium brands of beer in the Greater China region, the company has said.

With the end of the agreement, San Miguel Brewery Hong Kong no longer distributes Anheuser-Busch products under the brand names of “Budweiser” and “Harbin” after November 17 and “Beck’s,” “Boddingtons,” “Hoegaarden,” “Leffe,” “Lowenbrau” and “Stella Artois.”