San Miguel Corporation today announced a September year-to-date consolidated net income of P20.9 billion, nearly 200% higher than the same period last year.  This amount included gains on the sale of discontinued operations reported in the first quarter of 2008. Other gains include income from the IPO of San Miguel Brewery Inc. and sale of properties. Without these non-recurring items, San Miguel would have posted profits of P7.13 billion as of September, still significantly higher than the previous year.

For the first nine months of the year, San Miguel’s sales revenue amounted to P122.2 billion, 15% better than the comparable period in 2007. Operating income increased 26% to P11.7 billion, helped by strong performance in San Miguel’s domestic beer operations and a turn around in its international beer operations.

Said Ramon S. Ang, SMC president and COO “The current uncertainty in the global economy presents a challenge for our consumers, customers, suppliers and employees. But we continue to find new ways to cope with an extremely challenging set of business conditions and we’re proud of the results we’ve turned in. We remain confident about our future prospects."
SMB Inc reported a 10% rise in revenues to P35.2 billion and net income of P7.0 billion, 23% higher than September YTD figures in 2007. Operating income stood at P10.8 billion, 23% better than last year.

San Miguel’s international beer operations ended the nine month period generating revenue of $213 million, a 25% increase over the prior year. Strong volume gains in Indonesia and Thailand, and the recovery of its Hong Kong and North China operations resulted in an operating income of US$1.32 million.

Volumes for Ginebra San Miguel, continued to grow steadily, finishing 12% higher than last year, with growth coming largely from flagship Ginebra San Miguel, GSM Blue and Gran Matador. Revenues grew 17% to P11.2 billion, while operating income of P621 million, was 14% above last year’s level. Despite improved demand and GSMI’s ongoing efforts to raise efficiencies, higher marked-to-market losses resulted in a net income lower than last year.

GSMI recently purchased its parent’s non-alcoholic beverage assets and operations in a bid to transform itself into a total beverage company and further extend its operations beyond the mature liquor and spirits market into the faster-growing non-alcoholic beverage industry.

Reflecting gains from cost-driven pricing as well as strong performances across the poultry, feeds, and processed meat segments resulted to Food Group consolidated revenues of P53.1 billion, 19% higher than last year.  

However, facing enormous pressures of higher costs and weaker consumer spending, SMC’s food business ended the period with an operating income of P1.53 billion, 14% lower than the first nine months of 2007. The Food Group’s flour and dairy business were particularly affected by high wheat and dairy raw material costs.

Ongoing programs to add value to food products through investments in quality, marketing and innovation have been implemented and performance is expected to improve in the fourth quarter, traditionally the Food Group’s strongest.

The Packaging Group continued its recovery, registering marked improvements in its costs structure. San Miguel Yamamura Packaging Corp.’s September year-to-date sales revenue reached P14.8 billion, 8% higher than last year, while operating income amounted to P978 million, 94% higher than last year.

SMYPC continues to focus on developing overseas markets. Exports now reach Australia, South Africa, the Middle East and the US. 

Click here to download the materials presented at the Investors Briefing.