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FOOD-and-beverage giant San Miguel Corp. (SMC) is in
talks with several groups for a mining venture, its vice
chairman and president Ramon Ang said in an interview.
“We are
now in the process of evaluating a lot of offers to mine
iron, nickel, chromite and coal. Maybe within the year
we can start something,” he said.
San
Miguel, he said, is now conducting exploratory talks
with existing mining players, but declined to identify
them.
Mining
is just one of the new businesses that the beermaker
earlier identified to venture into to improve its
margins in the long term. Apart from mining, the
company, as approved by its shareholders, is also keen
on investing in high-growth sectors like power and
infrastructure.
“We are
redefining our company and paving the way for SMC to
enter into high-growth businesses. In so doing, we are
restructuring our company, taking the necessary
portfolio actions to better reshape our company and
position it for enhanced financial performance and
growth,” said Ang.
In the
first quarter, San Miguel reported a net profit of P11
billion, up 360 percent from the P2.4 billion it made in
the same period last year. Investment gains from the
sale of J.Boag & Sons and a portion of its stake in the
packaging business drove the company’s growth.
Of the
P11 billion, P6.9 billion represents the one-time gains
and P4.1 billion is the recurring net income. Taking out
the gains, the company still posted a strong first
quarter performance.
From
January to March this year, its consolidated revenues
amounted to P39.2 billion, up 11 percent over last year,
on the back of stable results across the majority of its
businesses.
Carrying
the momentum of 2007’s strong performance, San Miguel
Brewery Inc.’s net income surged 37 percent year-on-year
to P2.5 billion, driven by sales volume growth of 18
percent and successful cost-management efforts. Sales
rose 13 percent year-on-year to P12.3 billion.
The
international beer operations posted 9-percent higher
sales volumes in the first quarter with robust sales
particularly in Indonesia, Thailand, Vietnam and beer
exports. Combined with the improving performance of
North China and
Hong Kong, net sales reached $63.1 million, up 40 percent over last
year.
Meanwhile, revenues of Ginebra San Miguel Inc. grew 14
percent to P3.4 billion on account of a 10-percent
increase in volumes over the previous year. Demand was
especially strong for Gran Matador and GSM Blue, while
more aggressive distribution initiatives and promo
activities helped push volumes for flagship brand
Ginebra San Miguel. As a result, year-to-date net income
of P130 million was sharply higher by 93 percent versus
last year.
This
year, San Miguel expects another year of positive growth
driven by strong consumer demand for its brands and a
more focused industry-specific growth strategy. The
company is cognizant of the rising commodity price and
fuel cost that will put pressure on the bottom line,
requiring more vigilant management of efficiencies and
cost. |
