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Higher sales, lower raw material prices push San Miguel Brewery earnings


MANILA, Philippines- Despite the perceived slower consumer spending owing to the global economic crisis, the beer unit of San Miguel Corp. said its earnings posted modest growth in the first three months of the year. San Miguel Brewery Inc. told the Philippine Stock Exchange that its net income rose eight percent to P2.66 billion for the quarter. "Earnings growth was driven by continued cost management efforts and stable raw material prices," said SMBI. It added that net sales revenue "marginally" improved to P12.43 billion as sales volume reached 43 million cases. Operating income reached P3.8 billion, a "slight increase from the first quarter of last year." SMBI also declared cash dividends of P0.185 per share representing a "100-percent pay out from first quarter profits." The company earlier disclosed that it was able to raise P38.8 billion, P500 million more than P38.3 billion it expected from the Philippines' largest bond offering. Bond sale proceeds will pay for the beer brands, intellectual property rights, and various real-estate properties from its parent. San Miguel disclosed that it would sell the beer brands worth P32 billion and the land on which the breweries stand at P6.8 billion to SMBI. "As brand owner, (SMBI) would be able to maximize the use of existing brands, at the same time, develop its own brands that would cater to varied customer needs," the company said.GMANews.TV
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