(San Miguel HK Related) San Miguel Brewery 1Q 2024 Results Breakdown

There are actually 3 things on my mind these days with regards to writing of a post and investing related.

1) Huationg AGM and afterthoughts 

2) Dream Int Related updates and views 

3) San Miguel HK Related from San Miguel Brewery 1Q

For (1) i might probably write again when i have more time as the writing could be long and likely boring

For (2) i will await more results in the upcoming weeks from related companies before thinking about writing after i gathered my thoughts

For (3) i will write about it in this post as it is the easiest among the 3 things

(My reaction after seeing the 1Q 2024 Results Breakdown)

San Miguel Brewery released its 1Q 2024 Results.

Operating Income came in at USD 19.9 million in 2024 vs 20.6 million in 2023

Net Income came in at USD 20.3 million in 2024 vs 19.7 million in 2023.

Looking at this portion and the write-up above, we can infer that Saint Miguel HK probably did well in Exports, South China Related while doing badly in its HK Operations.

Looking at 1H 2023 Results, China Operations have lower revenue but have higher EBIT and as such, a growth in exports and south china operations would benefit as it is the more profitable segment. 

Net income coming in at Operating Income would likely due to its Tax coming into play. Which is good because as mentioned before, they have quite a lot of tax credits in its south china operations to utilize due to previous tax losses.

Looking at another major contributor to the International Operations, Indonesia Operations under PTD, they recorded around 26.8% fall in profits.

This is about  USD 1.2m of net income and therefore if we consider that net income is up for 1Q 2024, then international operations such as Saint Miguel HK as well as international operations under the main company itself would have helped.

The main problem is that when i consider the NCI side of things, this is where we don't get tallying numbers.

NCI fell by around 60 PHP Million. The fall is around 30.8%. Considering the impact of PTD's NCI at 41.7% stake it would be only 24 PHP Million. The other 36 PHP million is not accounted for or might fall under SMB HK or other NCI like BPI /SMBTL.

As such, due to presence of like 5 NCI, using this to gauge becomes difficult. Especially when there is no mention of anything related in the NCI Line in this financial results.

Conclusion

I would stick to the previous indicator that i have used that have worked. Looking at solely the indicator below, i might consider adding actually.

(As seen in my previous initiation post on 14 December 2023)

Considering that the Int Ops Weightage has fell to an all time low for PTD, we can infer that there is probably an increase in SMHK as Int Ops Net Income has increased as mentioned earlier.

The NCI Fall and HK Operations recording decline has got me to think abit negatively. But the words of south china operations sales volume 11% increase, exports growing has got me to think positively. The international operations net income has increased vs operating income and has stayed strong has also reinforced positive thoughts.

I will think abit more before deciding if i should add as i don't think any addition at this point without any other divestment would affect the portfolio on a sizable scale.

But definitely, i am not selling after seeing this result.

(Saint Mig Light, a popular drink in HK......but i don't see it in Korea)