San Miguel Brewery Hong Kong Limited posted a loss of HK600,000 (US$77,360) for its first fiscal quarter results, ended June 30, according to its filing with the Hong Kong Stock Exchange. The beer manufacturer saw a 4.7 per cent year-on-year drop in its consolidated revenues, amounting to HK$259.5 million for the period.
‘Our Hong Kong operations posted a strong recovery in the first half of 2016, as operating losses before net finance costs were reduced by 75 per cent, with total sales volumes growing by 5 per cent,’ noted the company in its filing.
Improvements in loss were noted as due to ‘closer monitoring of discounts, reduction in the cost of delivery through process reengineering, and the consolidation of warehouse operations’.
The group’s Macau operations also recorded better-than-expected results.
‘The company was able to buck the industry trend in Macau,’ notes the filing. This was due largely to sales volume growth of 4 per cent ‘through increased participation in on-premise outlets’.
Sales in the surrounding region saw declines, as noted in the Guangzhou subsidiary of the company, which saw a decline as ‘the beer industry in South China contracted,’ notes the filing.
However, the launch of new brands in the past two years, namely San Miguel Cerveza Negra and Red Horse Beer, ‘have been well received by the market’ in Hong Kong, notes the filing. Both the Negra and Red Horse brands have seen 38 per cent and 93 per cent volume growth year-on-year for the HKSAR.
‘We remain optimistic about our performance in the next six months,’ notes the filing. ‘We are confident that the plans and programmes we have put in place will ensure we put the right products in the right markets’.