“On the average, our international operations will report growth in the highteens,” SMC said in a disclosure to the Philippine Stock Exchange (PSE) yesterday. In terms of revenues, the company expects to grow more than 20 percent and report a positive operating income figure.

Encouraged by the very positive outcome in the first semester, SMC anticipates the momentum to continue in the second half of the year.

“Sales are expected to further increase in the summer months and the same strong results are expected in China,” an SMC official noted, adding that the Greater China operations account for more than two-thirds of SMC’s international beer volumes.

“We anticipate China to register volume growth in excess of 20 percent for the first six months of 2004,” the official said. Profit performance for the period is expected to show a significant improvement from last year as operations recover from the SARS-stricken days of 2003.

Outside China, Australia and Indonesia are the two markets that performed extremely well. Volumes increased significantly, and contributed to the company’s positive results.

Analysts believe that San Miguel’s penetration of regional growth economies, such as Thailand and Vietnam, was “strategically the best way to diversify its earnings from being a largely Philippine-centric company.”

In the years ahead, San Miguel’s international business is seen to account for 30 to 40 percent of its revenues, from less than 15 percent today.

The company will utilize its strengths in the domestic business and international orientation as it aggressively builds up its businesses in the region.(JAL)