MANILA -- Philippine food and beverage giant San Miguel Corp announced Friday that its net profit in 2005 rose by three percent over the previous year to P9.15 billion.

This exceeded the forecasts of analysts who said net profit would be around seven billion pesos owing to higher operating costs and financing charges following debt-funded acquisitions.

If not for financing charges and one-time expenses related to the acquisition last year of National Foods Ltd. of Australia, San Miguel's net profit in 2005 would have risen by 10 percent, the company said in a statement.

The beer-based company improved on a 2004 net profit of P8.86 billion. San Miguel's consolidated revenues grew to P226.9 billion, up 30 percent from 2004, due partly to the acquisition of National Foods.

It also credited income from San Miguel's overseas operations and exports, saying these sectors had brought in 35 percent of the company's annual revenues and showed San Miguel was less dependent on the Philippine market than previously.

San Miguel's flagship domestic beer operations saw revenues rise by 10 percent over 2004, the company said without giving figures. Its international beer operations posted an eight percent gain in revenues in 2005.

To maintain its growth momentum, San Miguel has also been expanding regionally in recent years. Aside from National Foods, it also acquired Australian fruit juice firm Berri Ltd and King's Creameries and Guolene Packaging Companies of Malaysia in 2005.

It forged a joint venture with other firms for the purchase of Del Monte Pacific.

"All these businesses are in or have access to growth markets that should help San Miguel gain further inroads into markets that include not only those in China, Indonesia, Hong Kong, Vietnam and Australia but also Thailand, Malaysia, Singapore and even India," the company said in a statement.

San Miguel is 20 percent owned by Kirin Brewery Co Ltd of Japan.*AFP

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