San Miguel Brewery Hong Kong issued a profits warning yesterday in a filing with the Hong Kong Stock Exchange, saying the Hong Kong arm of the Philippine-based company ‘is expected to incur a consolidated net loss for the year ended 31 December 2015’.
The loss is justified by the non-renewal of distribution agreements with Anheuser-Busch InBev China and Anheuser-Busch InBev International GmbH & Co. KG, which represent such beer brands as Budweiser, Corona and Stella Artois. At the same time, the fact that the brand is no longer distributing some products has increased associated operating costs.
In the first six months of 2015, San Miguel Hong Kong recorded a loss of HK$14.6 million (US$1.87 million), while for the full year of 2014 it posted a net profit of HK$35.3 million. The consolidated results of the group are expected to be announced on February 4.