Amid the prevailing global economic slowdown, San Miguel Corporation posted stronger-than-expected first quarter results with consolidated revenues edging up 8% to P41.9 billion and operating income rising by 11% to P4.29 billion from the same period in 2008.
As a result, net income before one-off items and foreign exchange gains for the period jumped 25% to P2.83 billion against the first quarter of last year.
“The first quarter was very challenging for us but we delivered good results which only proves that the group was geared up to face the challenges head on,” Ramon S. Ang, SMC President and Chief Operating Officer, said.
The company’s solid start for the year was driven by sustained performance of its beer and liquor businesses, packaging and food group’s recovery, along with tight group-wide financial management actions taken in 2008.
In a period characterized by slow consumer demand, San Miguel Brewery Inc. (SMB Inc.) still recorded a rise in net sales revenue to P12.4 billion for the first quarter of the year resulting in a 3 % increase in operating income to P3.9 billion and 8 % growth in net income to P2.66 billion.
SMB Inc., the country’s largest beer producer, expects to perform better in the coming months with higher volumes from the upcoming fiesta season and the festivities from the 2010 elections.
Ginebra San Miguel Inc saw net income surge 92% to P249 million for the January to March period on consolidated revenues of P4.56 billion which rose 35% from year-ago. GSMI’s operating income rose by a significant 108% to P417 million. The liquor unit’s strong performance resulted from improvements made in its sales mix and select price increases that were put in place to improve profitability.
The Company’s food business, though still feeling the effects of higher commodity costs, sustained its growth in the first quarter of the year with sales revenues increasing 11% to P18.4 billion.
With robust demand from the glass, plastic and PET businesses, The Company’s packaging business was another bright spot ending the period with a 64% increase in operating income to P567 million from revenues of P5 billion.