San Miguel Beer grows domestic, foreign markets

Posted at 05/29/12 4:54 PM

MANILA, Philippines -- Leading beer maker San Miguel Brewery, Inc. (SMB) on Tuesday reported a boost in its domestic and overseas volumes in 2011 and in the first quarter of the year.

In a disclosure to the Philippine Stock Exchange, the company said it retained its domestic beer market leadership at 96% in 2011. Its contribution to the total alcoholic beverage category also exceeded targets, reaching 67% in 2011, quoting SMB president Roberto N. Huang.

“We fulfilled our promise to grow our business and protect our market leadership in the Philippines. We implemented programs to boost awareness and patronage for our products as we pursued enhancements in productivity and cost management,” he said.

SMB’s consolidated revenues reached P18.3 billion in the first three months of 2012, a 5% increase vis-a-vis last year, the company said.

Operating income grew by 5% over the previous year to P5.3 billion, while international volumes also grew 9%, it said.

SMB posted sales volumes of 223.8 million cases in 2011, or a 1.4% increase from the previous year. Sales revenue grew 6.4% to P72 billion. Operating income rose to P20 billion, up 10.4% from the previous year, resulting in a 28.5% operating margin.

Huang also said the full utilization of its Santa Rosa, Laguna plant in 2011 also enabled it to meet growing demand in the domestic market.

Domestic boost

In the disclosure, SMB said its Red Horse extra strong beer grew its volume by 1.6% in 2011, while San Mig Light maintained its No. 1 position in the low-calorie beer segment.

It also said Gold Eagle Beer continued to conquer Visayas and Mindanao with a volume growth of 6%, while Cerveza Negra volumes increased by 16%. San Miguel Super Dry also grew 8% and San Miguel Premium All-Malt improved 3%.

“San Miguel Pale Pilsen enjoyed steady growth and widened its appeal with the release of a premium, long neck 330 mL paper label format in select upscale outlets in GMA (Greater Manila Area) and Luzon. San Mig Strong Ice meanwhile grew its market share in GMA in the premium beer segment,” it said.

New brand San Miguel Flavored Beer in lemon and apple variants surpassed volume targets by 61% in its first year, it said.

International sales

Huang also reported that Anker and San Miguel Beer premium brands contributed to double-digit volume growth and expanded profit in Indonesia, while San Miguel and premium brands enjoyed higher sales in Hong Kong.

“For exports, volume and profit expansion were also evident, especially in proven markets like Sudan, Singapore, Malaysia, Taiwan and South Korea and in emerging markets in Africa and the Middle East,” SMB said.

Huang attributed the growth of Pale Pilsen in the region to below-the-line and advertising campaigns.