Top Business News

Ginebra focusing on profitable brands; sees P1B in net income
[BUSINESSWORLD]THE ALCOHOLIC beverage unit of San Miguel Corp. hiked profits by more than half from January to June with continued demand for its products, making Ginebra San Miguel, Inc. optimistic it would close the year on a stronger financial footing.
Ramon S. Ang, San Miguel president and a director at Ginebra, told reporters at the sidelines of the company’s stockholders’ meeting yesterday that net income went up by 75% to P425 million during the first six months of the year, while revenues climbed by 0.27% to P9.34 billion.
"If you notice, the net income compared with last year is already up by 75%. We believe the company will end the year with almost a billion in net income," Mr. Ang said. "We cleaned up the company and refocused on the most saleable brands [and these helped boost our profits]."
Mr. Ang said there were no plans to offer new products as Ginebra would focus on existing brands like Gran Matador brandy, which is already No. 1 in its category.
Ginebra Chairman Eduardo M. Cojuangco, Jr. said strong brands, a resilient product portfolio, a wide distribution network, strong market presence, and a sound balance sheet would help the company withstand the global economic downturn.

Diversifying San Miguel close to acquiring majority stake in Extelcom
[BUSINESSWORLD]DIVERSIFYING FOOD and beverage giant San Miguel Corp. has signed an agreement to acquire a majority in Express Telecommunications, Inc. (Extelcom), expecting to complete the transaction in a couple of months.
"I am not sure if they are already done with their pending issues [but we] have already signed a memorandum of understanding with them to do the deal," San Miguel Corp. President Ramon S. Ang told reporters at the sidelines of Ginebra San Miguel, Inc.’s annual stockholders’ meeting yesterday.
Under the agreement, he said, Extelcom shareholders need to clean up the company first.
San Miguel Corp. has been aggressively entering the telecommunication industry, recently acquiring a 49% stake in listed Liberty Telecoms Holdings, Inc. through newly incorporated subsidiary Vega Telecom, Inc.
Mr. Ang had said San Miguel Corp. was already in the final stages of talks to acquire Extelcom, and if necessary would create a holding firm to consolidate all of its telecommunication businesses.
Extelcom is under corporate rehabilitation and has an outstanding debt of P9 billion.
Lopez-led Marifil Holdings Corp. used to be the biggest shareholder of Extelcom until its stake was reduced to 8.39% from 46.62% following a debt-to-equity swap mandated by the court-approved rehabilitation plan.
Marifil Holdings is owned by the Lopezes’ own telco, Bayan Telecommunications, Inc.