San Miguel Corporation reported strong first nine months results driven by the sustained growth of its beer and liquor units, along with higher productivity and continuing cost discipline across all businesses. Net income as of September, reached P57 billion while consolidated revenues grew 4% to P126.5 billion. Operating income ended the period at 12% higher to P13.1 billion. Before one-off items, net income rose 6% year-on-year to P7.61 billion. Volume improvements combined with cost management and stable raw material prices boosted San Miguel Brewery Inc.’s performance (SMB Inc.) after a difficult first three months for the Company’s beer unit. SMB Inc. revenues and operating income were both up 5% in January-September to P37 billion and P11.3 billion, respectively.
With the San Miguel Octoberfest kickoff in September, the company expects to further improve volumes and consumption for the rest of 2009. Liquor unit Ginebra San Miguel Inc. reported double-digit results with revenues at P14.1 billion, up 27% from the same period last year. Operating income rose 41% to P872 million. The strong performance resulted from sustained improvements in alcohol production and product distribution costs. The Company’s food business maintained strong sales momentum registering sales revenue of P55.9 billion, 5% higher than the same period last year, while operating income zoomed 51% to P2.31 billion. Meanwhile, strong demand for glass, plastic, metal and PET businesses for the first nine months resulted in substantial gains for the Company’s packaging unit which reported a 41% increase in operating income to P1.4 billion.