San Miguel Brewery Inc., the beer unit of San Miguel Food and Beverage Inc., reported a net income of P6.74 billion in the first quarter of 2019, up 18.9 percent from P5.67 billion recorded in the same period last year
SMB said in a regulatory filing first-quarter sales rose 16.8 percent to P34.83 billion from P29.81 billion in the first quarter of 2018.
Cost of sales increased 22 percent to P20.1 billion from P16.45 in 2018.
Gross profit stood at P14.72 billion, up 10.2 percent from P13.35 billion in 2018.
Operating income rose 14.9 percent to P9.55 billion from P8.31 billion on year.
San Miguel last year announced plans to build around five to six new breweries. Each brewery will cost roughly $250 million and run on an annual capacity of 2 million hectoliters.
SMB last year started construction of a brewery plant in Tagoloan, Misamis Oriental, in Mindanao. The plant will have an initial capacity of 1 million hectoliters
The beer company has also planned to construct a new brewery at the boundary of La Union and Pangasinan and another one each in Quezon, Cagayan de Oro and Zamboanga, said Ang earlier.
SMB also plans to expand the bottling facility in Sta. Rosa, Laguna by another 1 million hectoliters to 2 million hectoliters.
SMB is the largest producer of beer in the Philippines, with nine out of 10 beer drinkers preferring its brands.
The company currently has six production facilities strategically located across the Philippines.
It has operations in China, Vietnam, Thailand and Hong Kong. Its beer products are also being exported to more than 50 countries worldwide.
SMB was previously a majority-owned direct subsidiary of San Miguel Corp. The parent firm last year consolidated its food and beverage businesses under San Miguel Foods and Beverage Inc. to rationalize them.
Other units under SMFB include Ginebra San Miguel Inc. and San Miguel Pure Foods Company Inc.