San Miguel Corp. yesterday reported first quarter consolidated revenues of P39.2 billion, up 11 percent over last year.

Consolidated operating income reached P3.85 billion up 40 percent and net income of P11.0 billion is over four times that of the same period last year.

Income from continuing operations was at P5.52 billion, more than five times the amount in the first quarter of 2007 as better efficiencies and tighter cost management across all operating units complement revenue building efforts.

Excluding the one-time gains on sale of investments, net income is P4.1 billion more than double 2007.

The conglomerate also reported that it had to write off P1.3 billion of Monterey Foods assets as part of a clean up in preparation for a secondary offering of San Miguel Pure Foods Co. early next year.

The company's 2007 results were delayed by a month due to auditing at its meat subsidiary where P1.3 billion worth of meat inventory had to be written off.

Analysts expect San Miguel, which makes Southeast Asia's oldest beer brand, to post 2008 net income of P12.19 billion.

For San Miguel's Full Year Audited 2007 results, the company reported a 10 percent rise in sales revenues to P155 billion with profits from continuing operations of P8.21 billion ending slightly higher versus 2006.

Net income amounted to P8.63 billion, 16 percent lower than 2006, reflecting the CCBPI and National Food's transactions which now fall under "Discontinued Operations" and the lower performance of the liquor and packaging businesses.

San Miguel Brewery Inc.'s net income surged 37 percent on year to P2.5 billion, driven by sales volume growth of 18 percent and successful cost-management efforts. Sales rose 13 percent on year to P12.3 billion.

The international beer operations posted 9 percent higher sales volumes in the first quarter with robust sales particularly in Indonesia, Thailand, Vietnam and beer exports. Combined with the improving performance of North China and Hongkong, net sales reached $63.1 million, up 40 percent over last year.

Revenue of Ginebra San Miguel, Inc., the Philippines' No. 1 liquor company and producer of the largest selling gin in the world, grew 14 percent to P3.4 billion on account of 10 percent increase in volumes over the previous year. Demand was especially strong for Gran Matador and GSM Blue, while more aggressive distribution initiatives and promo activities helped push volumes for flagship brand Ginebra San Miguel. As a result, year-to-date net income of P130 million was sharply higher by 93 percent versus last year.

San Miguel Food Group's consolidated revenue rose 19 percent to P16.6 billion. Poultry, flour, feeds and value-added segments performed solidly with most businesses registering higher volumes and selling prices. Further contributing to revenue growth was higher volumes for the Food Group's Vietnamese feeds and live piggery operations.

San Miguel Packaging Group's first quarter performance improved significantly with revenue growing 8 percent to P4.96 billion, reflective of the recovery in demand for glass in the beer, healthcare and pharmaceutical industries. Operating income of P347 million was a record turnaround from last year's P25 million.

For 2008, San Miguel expects another year of positive growth driven by strong consumer demand for its brands and a more focused industry-specific growth strategy. The company is cognizant of the rising commodity price and fuel cost that will put pressure on the bottomline, requiring more vigilant management of efficiencies and cost.