April 24, 2008

San Miguel Monterey projects smaller 2007 net income

Monterey Foods Corp., a meat-processing unit of the beverage and food conglomerate San Miguel Corporation will have a smaller net income for 2007 and less retained earnings for the previous year.

Monterey has earlier caused some hitches in its financial reports due to its overstated net profit in the past two years, delaying the release of San Miguel's monetary statements to the Securities and Exchange Commission and the stock exchange. 

In a statement to the stock exchange, San Miguel said external auditors "failed to complete on time the financial reports of its subsidiary, San Miguel Pure Foods Corp., parent of Monterey, due to certain adjustments made by Monterey which affected its receivables and inventories."

San Miguel chief financial officer Ferdinand Constantino also disclosed in the statement that Monterey's external auditors are still ascertaining the allocation of the adjustments made between the current year and the prior years' results of operations.

Constantino committed to the stock exchange that San Miguel would submit its completed financial statements by May 15.

San Miguel earlier released earnings data of its San Miguel Brewery unit for the 2007 fiscal year and the first quarter of 2008.

San Miguel Brewery recently reported a net income of P2.5 billion in the first quarter of 2008, up 37 percent year-on-year, citing increased volumes and cost management efforts.

First-quarter net sales were P12.3 billion, up 13 percent year-on-year from P10.8 billion, thanks mainly to an 18-percent increase in sales volume, the company said at an investors¡¯ briefing ahead of its initial public offering of stock next month.

Operating income was P3.7 billion in, up 35 percent year-on-year. Earnings before interest, taxes, depreciation and amortization (EBITDA) grew 31 percent to P4.2 billion.