Analysis of beer market in China (on Russian)
Beer market of Ukraine: big three losing weightIn 2016, fast increase of excises and resulting price spike stood in the way of the beer market stabilization. Most of competition (as well as mass sorts) moved to the economy segment of the market. The biggest losses were incurred by the leading three, especially Obolon, which again experienced pressure after reallocation of Efes market share. However, one should already speak of TOP-4. Group Oasis CIS (PPB) became a strong player and competitor to transnational companies. Besides the net sales of many regional medium breweries look rather good and 16-fold cost reduction wholesale trade license for craft brewers opens up a possibility of rapid growth in 2017.
Analysis of beer market in China
China’s transition to a “new normal” reality backfired on the brewing industry unexpectedly. Stagnation and subsequent market decline resulted from dynamic social and economic changes. There has emerged a “two speed” market where the medium class significance is growing, yet the share of main beer consumers, “blue collar” is decreasing. Also the inflow of consumers is shrinking, as demographics stopped being a growth driver. Finally, beer is giving way to other alcohol drinks....
Philippines. San Miguel Brewery enjoys both income and revenues growth in the first three months of this year
The group also gained from improved operating efficiencies that boosted margins for oil refining unit Petron Corp. amidst the slump in oil prices.
This net profit level of P13.5 billion for the first three months included equity attributed to minority interest.
SMC’s group-wide operating income rose by 38 percent to P22.82 billion for the first quarter from the previous year.
Beer unit San Miguel Brewery reported a 23 percent growth in first quarter net profit to P4 billion while hard liquor arm Ginebra San Miguel posted a 288 percent improvement in net profit to P54 million.
Food unit San Miguel Purefoods Co. Inc. posted a 34 percent growth in three-month net profit to P1.22 billion, driven by the performance of its feeds, poultry and branded value-added businesses.
Petron’s net profit skyrocketed to P2.76 billion from only P257 million in the previous year. SMC said Petron had “weathered the prolonged slump in oil prices as it reported better first quarter results both from its Philippines and Malaysian operations.”
Meanwhile, the packaging business posted a three-month operating income of P597 million, rising by 25 percent while the operating income of power unit SMC Global Power posted a 7 percent rise in operating income to P7.31 billion.
The infrastructure arm San Miguel Holdings posted a first-quarter operating income of P2.43 billion, up by 16 percent year-on-year.
Ongoing projects include: the NAIA Expressway which is expected to finish a significant portion by end-June this year; Skyway Stage 3, TPLEx phase 3, SLEX TR4, the Bulacan Bulk Water Project and MRT-7 which, following its groundbreaking held last April 20, will start construction soon.
Meanwhile, its Boracay Airport is scheduled to start jet operations by the second quarter of this year while construction of a new and bigger terminal is expected to commence by November.
12 May. 2016