E-Malt.com News article: 3023

The Philippines' San Miguel announced on July 29, 2004 that its international beer operations are expected to report solid volume gains in the first half of the year. San Miguel Corporation’s (SMC) international beer operations are expected to report solid volume gains in the first half of the year. "On the average, our international operations will report growth in the high-teens," an SMC official said.

In terms of revenues, the company expects to grow more than 20 percent and report a positive operating income figure. Encouraged by the very positive outcome in the first semester, SMC anticipates the momentum to continue in the second half of the year.

"Sales are expected to further increase in the summer months and the same strong results are expected in China," the official noted. The Greater China operations account for more than two-thirds of SMC's international beer volumes. "We anticipate China to register volume growth in excess of 20 percent for the first six months of 2004," the official said.

Profit performance for the period is expected to show a significant improvement from last year as operations recover from the SARS-stricken days of 2003.

Outside China, Australia and Indonesia are the two markets that performed extremely well. Volumes increased significantly, and contributed to the company's positive results.

Analysts believe that San Miguel's penetration of regional growth economies, such as Thailand and Vietnam, was "strategically the best way to diversify its earnings from being a largely Philippine-centric company."

In the years ahead, San Miguel's international business should account for 30 to 40 percent of its revenues, from less than 15 percent today. The company will utilize its strengths in the domestic business and international orientation as it aggressively builds up its businesses in the region.


31 July, 2004