SMC PACKAGING GROUP REPORTS STRONG GROWTH IN FIRST SEMESTER

San Miguel Corporation’s San Miguel Yamamura Packaging Group (SMYPG) reported a 164% rise in June year-to-date operating income, as efforts to manage costs and working capital produced solid operating results and efficiency improvements.

SMYPG posted operating income of P782 million in the first six months of 2008 compared with P296 million a year ago.

Total revenue for the first semester rose 7% percent to P9.91 billion on the back of stronger sales in plastics and glass. Sales of glass grew by 40% on robust demand from domestic customers and exports to Australia and the Middle East. Plastic crates and PET bottle sales also contributed to the increase in revenues.

Said Ramon S. Ang, president of San Miguel Corporation and Chairman of San Miguel Yamamura Packaging Corporation, “We are encouraged that sales trends for our products continue to improve, particularly for our biggest segments, glass and plastics which represent 42% of our total packaging revenue.

“Despite economic pressures, we have sales momentum coming from both internal and external customers. We’ve also tapped customers in overseas markets; this is important as we anticipate continued pressures from a weakened economy and a challenging competitive environment," added Ang. “Our cost and productivity initiatives, many of which are still on-going, are reaping clear benefits to our business.”