The firm said in a disclosure that net income for the two-month period rose to P988 million, a 4 percent improvement from the same period a year ago.

SMC said the improvements over 2005 were largely a result of contributions from international operations, gains duplicated in SMC’s Philippine beverage, food and packaging businesses.

For the first two months of 2006, the combined National Foods and Berri Ltd., two SMC acquisitions in Australia, brought in sales revenue totalling AU8 million.

With the improved costs of raw materials, and fixed cost containment, SMC’s consolidated operating income in January--February 2006 increased to R3.03 billion, 50 percent above last year.

Reflecting this buoyant performance, San Miguel’s domestic beer operating income rose to R1.69 billion, 10 percent more than in the same period last year. Year-to-date revenue was at R7.78 billion, 8 percent higher than 2005.

Beer International sales volume for the first two months was 14 percent better than last year with sales revenue increasing 6 percent from last year to .1 million.

"The positive volume performance was brought about by strong results from SMC’s breweries in Greater China and from exports operations," the firm said.

SMC is looking toward more robust growth rates this year as it leverages on the continuing strong performance of its largest core businesses and the growth potential of its Australian acquisition, National Foods.

"Our beer and food businesses grew in 2005 as a result of effective brand building and strong innovation, well above the rest of our portfolio and we are looking to these businesses to increase our growth rate, allowing us to generate internal sources of funding for future business opportunities," said SMC president Ramon S. Ang.

He added that "these businesses were able to maintain their margins despite significant inflationary factors" while "up-front cost initiatives, improved price and product mix and stepped-up sales execution allowed us to finish the year with a strong top line."

Ang also cited the combined Australian investments as another source of organic revenue generation.

Meanwhile, the food and beverage conglomerate declared a cash dividend of 0.35 pesos per share to be paid on May 22 to shareholders on record as of April 28.