The Philippines: San Miguel Brewery reports 14% growth in first-half net income
San Miguel Brewery, Inc. (SMBI), the country’s dominant beer producer, reported a 14 percent growth in consolidated net income to P9.4 billion in the first six months of the year, Manila Bulletin reported on August 4.
In a disclosure to the Philippine Stock Exchange, the firm said its consolidated revenues rose 12 percent to P53.1 billion during the period in review compared to the first half of 2016.
SMC said that, SMBI, with a strong portfolio of beer brands, benefitted from creative marketing and sales executions which connected with its audience and allowed it to push into new territories, translating to higher consumption.
SMBI’s Philippine operations reported a 13 percent revenues jump to P47 billion in the first half of 2017 from P41.6 billion in the same period last year.
The firm is investing some $650 million for the expansion of its local breweries and bottling plants as well as for a planned brewery in the United States as it looks at the overseas market for further growth.
SMBI Chairman Ramon S. Ang said they are allotting $500 million for the next two years for the expansion of all of the firm’s breweries or bottling plants in the country.
Ang said San Miguel Brewery is putting up new breweries in Iloilo and Cagayan de Oro cities while the capacity of its bottling facility in Sta. Rosa, Laguna will be expanded by another 2 million hectoliters.
He added that they will also expand San Miguel Brewery’s Bacolod, Davao, Cebu, Polo, Valenzuela breweries and San Fernando bottling plant.
The company has brewing facilities in Bacolod City; San Fernando, Pampanga; Polo, Valenzuela; Mandaue, Cebu; and Sta. Cruz, Davao del Sur. It has bottling facilities in Sta. Rosa, Laguna; Ligao, Bicol; and Cauayan, Isabel.
“All of our breweries have capacity utilization of close to 95 percent each. We are expanding all of these so we can export more,” said Ang. SMBI currently has a total domestic capacity of 16.8 million hectoliters.
He noted that there is growing sales volume in all of the firm’s export markets.
Ang said the volume of their export to the United States has already reached a level where the construction of a brewery is warranted.
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