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Showing posts with label San Miguel Brewery. Show all posts
Showing posts with label San Miguel Brewery. Show all posts

Friday, February 15, 2013

Stock News 2013: HSBC named “Best Debt House”

HK HSBC Main Building 香港滙豐總行大廈
HK HSBC Main Building 香港滙豐總行大廈 (Photo credit: Wikipedia)

British bank Hongkong and Shanghai Banking Corp. Ltd. was named “Best Debt House in the Philippines 2012” by Hong Kong-based financial magazine The Asset, winning this citation for the fifth consecutive year.

HSBC has been winning the award from this magazine as best arranger of debt deals in the Philippines since 2008 which the bank said was a “testament to the number of landmark transactions it has executed throughout the years.”

The foreign bank has pioneered some of the largest corporate transactions in the Philippines, including San Miguel Brewery’s P38.8-billion retail bond issue and San Miguel Corp.’s P80-billion preferred shares issue, the largest capital market transaction in the country so far.

HSBC also arranged a number of successful deals for the Philippines, launching its first Global Peso Note, and all of its three liability management exercises. These exercises have tempered foreign exchange risk for the country and pared down interest expense. The Philippines’ most recent P30.8-billion 10-year GPN and $1.2 billion tender offer also won Euromoney’s “Deals of the Year 2012.”

Last January, HSBC executed ICTSI’s $300-million 10-year offshore bonds, JG Summit’s $750-million 10-year offshore bonds and Petron Corp.’s $500-million perpetual bond issue.

http://business.inquirer.net/107063/hsbc-named-best-debt-house-in-ph

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Sunday, November 4, 2012

Stock News 2012: SM Purefoods to raise $400M from overseas equity offering

B-Meg Llamados
B-Meg Llamados (Photo credit: Wikipedia)

Local food giant San Miguel Pure Foods Co. Inc. (SMPF) is hoping to raise as much as $400 million from an overseas equity offering to widen  its public float.

Sources said SMPF, which is hard pressed to meet a stock exchange ruling that requires listed firms to have a minimum public ownership of 10 percent,  intends to start accepting orders from institutional and retail investors beginning Nov. 12.  Its public float currently stands at 0.08 percent.

The company has reportedly tapped UBS AG, Standard Chartered and Malayan Banking Bhd., as financial advisors.

SMPF is one of three units of diversifying conglomerate San Miguel Corp. with public ownership of less than 10 percent.  The two others include San Miguel Brewery Inc. and San Miguel Properties with a public float of 0.61 percent and 0.06 percent, respectively.

The stock was last traded on Sept.4, at P900 each share.

Listed companies that fail to meet the mandated 10-percent public float by the end of December face trading suspension for up to six months, by the first trading day of 2013.  Aside from this, errant companies must still pay listing fees while they are suspended.

After the lapse of the suspension period, they will automatically be delisted from the local bourse unless they have by then complied with the requirement.

During the trading suspension, sale of shares may be effected only outside the trading system of the PSE and the transactions will be subject to a capital gains tax of between five and 10 percent.

With the deadline for listed firms’ compliance with the minimum public float requirement nearing, Purefoods has reportedly embarked on a road show to drum up support for its planned share sale.  The company is looking to boost its public float  to as much as 25 percent.

The share sale comes at a good time time when investor confidence in the country’s economy continues to soar amid steady remittances from Filipinos working overseas, record low interest rates,  strong domestic consumption, a manageable inflation and  recovery of electronics exports.


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Thursday, October 4, 2012

Stock News 2012: SMB expects better results this year

San Miguel Beermen logo
San Miguel Beermen logo (Photo credit: Wikipedia)

San Miguel Brewery Inc. expects to top last year’s performance, mainly driven by sustained efforts to increase patronage of its products and enhancements in productivity, according to a top company official.

The beer unit of Southeast Asia’s largest food and beverage conglomerate San Miguel Corp. jacked up its net earnings last year by 17 percent to P12 billion on the back of higher volume and selling prices.

During SMB’s P3-billion fixed-rate bonds listing ceremony at the Philippine Dealing & Exchange Corp. yesterday, company president Roberto Huang said the firm remains “steadfast in besting our 2011 performance and commit ourselves to achieving higher volume and profability this year.”

Huang said SMB has exhibited strong financial performance over the past nine months despite difficult market conditions brought about by recent natural calamities.

He said that while the third quarter financial results were a bit soft, the company remains on track to meeting its financial targets especially with the onset of Christmas season.

Huang said the company’s existing capacity of 200 million cases is enough to last for some three or five years.

SMB intends to grow organically and is looking at opportunities in the local and international markets to add value to the company.

With the deadline for listed firms’ compliance with the minimum public float requirement of 10 percent nearing, the company is continuously holding talks with its Japanese partner Kirin Brewery to try to find a mutually acceptable solution to the local bourse’s directive. “We’re trying to work out a compromise to avoid delisting,” he said.

Errant firms have until the end of the year to boost their public ownership level or face monetary sanctions and suspension of trading in their shares for up to six months beginning the first trading day next year.

Huang said SMB might also ask the Philippine Stock Exchange (PSE) to extend the deadline for compliance.

If all else fails, parent firm San Miguel will have no choice but to take SMB private, Huang said.

SMB is currently the dominant player in the domestic beer market at 96 percent last year. Its contribution to the total alcoholic beverage category also exceeded targets, hitting 67 percent in 2011.

Last year, the company registered sales volumes of 223.8 million cases, translating to revenues of P72 billion or an increase of 6.4 percent from 2010.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=855595

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Tuesday, August 14, 2012

Stock News 2012: SMC income jumps 31% to P14.1 B in H1

PAL's third logo was applied to aircraft durin...PAL's third logo was applied to aircraft during the 1970s, in concurrent use with the second one. The typeface used here was later applied to the second logo. (Photo credit: Wikipedia)
Diversified conglomerate San Miguel Corp. (SMC) jacked up its net income 31 percent in the first half to P14.1 billion, powered by strong performance across most of its businesses.

In a financial report released yesterday, SMC said its revenues grew 25 percent to P329.5 billion although operating income slid 20 percent to P25.1 billion on increased prices of crude oil and raw materials.

Despite the rise in input costs for some of its businesses, SMC chairman and chief executive officer Eduardo M. Cojuangco Jr. said the group’s highly-diversified portfolio provided fresh growth drivers that allowed them to deliver good results.

“Our first semester financial results provide a glimpse of the importance of a diversified portfolio and the continuing value of our core businesses to the overall stability of the group,” Cojuangco said.

Consolidated recurring earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to P38.4 billion.

Flagship firm San Miguel Brewery Inc. turned in revenues of P36.9 billion, four percent higher than a year ago, with the brewery’s international operations registering double-digit revenue growth as a result of higher volumes in Hong Kong, Indonesia and Thailand. Consolidated operating income rose six percent to P10.8 billion.

Hard liquor unit Ginebra San Miguel Inc., on the other hand, reported a 12 percent drop in revenues to P7.2 billion as sales volumes declined by 15 percent to 11.7 million cases.   As a result, it recorded an operating loss of P157 million.

San Miguel Pure Foods Co. Inc. continued its upward traction with net sales improving seven percent to P45.3 billion on strong showing of the agro-industrial cluster, value-added meats and milling segments.

Higher raw material prices and limited supply of cassava in the earlier part of the year weighed down on its operating income, which was at P1.9 billion in the first semester. However, the second quarter improvements in the pork and chicken supply-demand scenario and raw material prices almost doubled its operating income to P1.2 billion from P659 million in the first quarter.

Meanwhile, revenues from the San Miguel Packaging Group slightly decreased to P11.9 billion, weighed down by the lingering global economic crisis. Operating income, however, improved five percent to P1.1 billion.

With better utilization of all plants and increased demand from bilateral customers, SMC Global Power’s consolidated net revenues went by 11 percent to P39.5 billion, resulting in a 17 percent rise in operating income to P8.8 billion.

Its net generation volume for the first semester reached 8,081 gigawatt hours, up 12 percent.

Net earnings of its major sales contributor, Petron Corp., slid 93 percent to P432 million due to the volatility in global oil markets and the consolidation of its Malaysian operations. It completed the purchase of Esso Malaysia Bhd. in March.   Excluding the second-quarter loss of the Malaysian business, Petron posted a net profit of almost P2 billion in the first semester.

The oil industry saw a steep and continuous decline in crude and finished product prices from April to the first week of July, which resulted in 13 weeks of consecutive price rollbacks in local pump prices. Margins also narrowed as higher cost inventory were sold at lower prices. But while margins were contracting, Petron’s total domestic sales expanded nine percent 21.81 million barrels.

In other businesses, SMC said its infrastructure projects are progressing as planned and it expects revenues to come in by the first quarter of 2013.

Philippine Airlines (PAL) also recently took delivery of its third long-haul Boeing 777-300 ER. PAL has also started implementing its new growth strategy that includes the modernization of its fleet, the expansion of its network, and improvements in passenger service. Looking forward, the airline has several initiatives in place aimed at increasing profits by generating revenue growth and controlling costs.

“Across the San Miguel Group, we will be working hard to harness potential synergies from recent acquisitions and new businesses so that markets can be developed, revenue streams can be increased, costs can be reduced, and efficiency improved,” Cojuangco said.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=837747

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Thursday, May 10, 2012

Stock News 2012: SMB mulls options on public float

Tender Juicy Giants logo.Tender Juicy Giants logo. (Photo credit: Wikipedia)
San Miguel Brewery Inc. (SMB), the flagship unit of diversifying conglomerate San Miguel Corp., said may issue preferred shares to comply with the exchange’s minimum public ownership rule or apply for voluntary delisting should it fail to convince its Japanese partner to dilute its shareholdings.

In a briefing with reporters yesterday, San Miguel Corp. president Ramon Ang said they are meeting with Japan’s largest beer company, Kirin Brewery Co., which owns 48 percent of SMB, to discuss ways on how to meet the minimum public float of 10 percent for listed companies.

“We’ll meet in June, hopefully we can sell together because we don’t want to get diluted,” Ang said.

Should everything else fail, SMB may opt to voluntarily delist its shares from the stock exchange.

SMB, the country’s most valuable listed firm, has a free float of 0.6 percent, according to stock exchange data.

Ang pointed out that SMB has a strong cashflow and does not need to go to the equity market to support its expansion.

As for its food manufacturing arm, Ang said Purefoods is considering selling 10 or 15 percent of the company through a secondary offering or issuance of new shares to increase its public float to at least 10 percent.

http://www.philstar.com/Article.aspx?articleId=805695&publicationSubCategoryId=66

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