San Miguel, the biggest food and drinks conglomerate in Southeast Asia, the Philippines top beer producer is a source of national pride in the Philippines. Its product portfolio includes beer, hard liquor, carbonated and non-carbonated, non-alcoholic beverages, processed and packed food products, meat, poultry, dairy products and a number of packaging products. It owns a range of beverage brands and products that extends to hard liquor, bottled water, powdered juice and juice drinks. San Miguel Brewery Inc, (SMB) has five breweries in the Philippines located in Luzon, Visayas and Mindanao. Its food operations include the production and marketing of fresh, ready-to-cook processed chicken, pork and beef, milk, butter, cheese, margarine, ice-cream, flour, pancake mix, snack foods, coffee, cooking oil and animal aquatic feeds. In February 2007, the partners the Coca-Cola company completed the sales of the latter's 65% shareholding in Coca-cola bottler's Philippines Inc.

San Miguel, which is 20% owned by Japan's Kirin Holdings Co. Ltd, the 115 year-old company has breweries in China, Vietnam. Indonesia, Australia and Thailand and packaging plants in China, Vietnam and Malaysia. SMC reported a strong  start this year with first quarter consolidated revenues of P39.2 billion, up 11% over last year, driven by good results across the majority of its businesses. Consolidated operating income of P3.85 billion is up 40% and net income of P11.0 billion is over four times than that of the same period last year. Income from continuing operation was at P5.52 billion, more than 5x the amount in the first quarter of 2007 as better efficiencies and tighter cost management across all operating units complement revenue building efforts. Excluding the one-time gains on a sale of investment, net income is P4.1 billion more than double 2007.

 Key Stats & Ratios

                                             Quarterly    Annual    Annual
                                             (Mar '08)    (2007)    (TTM)

Net Profit Margin                     14.11%       5.30%     7.99%
Operating Margin                       9.84%       7.77%     8.27%
EBITD Margin                                   -      11.99%     9.14%
Return on Average Assets         7.60%         2.58%     4.13%
Return on Average Equity         15.48%        6.27%     8.91%
Employees                              15,252    

 A worker unloading cases of San Miguel beer along a busy street in Manila. The brewery contributes around 40 percent of the San Miguel group's operating profit

 Kirin, one of the largest shareholders in  SMB, its 19.97% stakes gives the Japanese company three seats in San Miguel's 15-member board of director.

For 2008, SMB expects another year of positive growth driven by strong consumer demand for its brands and a more focused industry-specific growth strategy. The company would focus on the Philippines market for now after listing 5% of its flagship domestic brewery which gained 6.25% in its stock market debut. The IPO price values SMB at 13.7 times forward earnings, still at a premium to the local market which is trading around 10 times, but broadly in line with regional peers.

SMB, the only big listing scheduled for this year, the group's crown jewel, opened at 8.30 pesos per share on its debut and at one point fell to 7.90 pesos. The IPO price was at the bottom of an indicated price range of 8-11 pesos. SMB B shares available to local and foreign investors, jumped 4.2% to P86.5 . It’s A shares, for local investors only, climbed 2.03 percent to P75.50. SMB will pursue a separate listing for its packaging operation and consolidate its food businesses for another stock offering. Cash-rich SMB had previously liquidated assets in a bid to diversify into energy, mining and infrastructures.