25th April 1997
Metro Pacific Corporation, First Pacific Company Limited's Philippine flagship, announced today that consolidated profit after tax and minority interests rose 122 per cent in the first quarter to P201 million from P90 million, helped by strong contributions from its property and telecommunications affiliates.
Metro Pacific, a leading Philippine conglomerate which also has operations in the areas of consumer products, packaging and banking, said basic earnings per share rose 106 per cent in the quarter to 5.87 centavos from 2.85 centavos.
Napoleon L. Nazareno, President of Metro Pacific, said: "Metro Pacific has once again reported significant growth in net income in the first quarter and this creates a sound base for the rest of the year. The substantial increase in recurring income has been achieved through strategic investments over recent years in rapidly developing sectors, allowing Metro Pacific to create a sustainable platform for growth."
Operating profit fell to P32 million from P126 million, mainly reflecting losses in its packaging activities under Steniel Manufacturing Corp. But contributions from affiliates -- which include Smart Communications, Inc., the nation's leading cellular phone company, and Fort Bonifacio Development Corp., which is helping to develop the Fort Bonifacio former military headquarters in Metro Manila into a world-class city -- rose nearly four-fold to P195 million from P50 million.
In property development, a strong contribution was achieved by Fort Bonifacio Development Corp., reflecting early payments from purchasers of lots in the development. This has provided substantial funds for infrastructure development and general working capital.
In telecommunications, Smart Communications saw its mobile-phone subscribers climb 24 per cent in the quarter to 383,000 at 31st March from 310,000 at year-end 1996, confirming its position as the nation's leading cellular provider. Smart's international gateway facility and paging network continued to be actively promoted to its cellular subscribers, as well as to the market as a whole. The company continues to plan for an initial public offering of its shares in the third quarter of 1997, which will help provide further resources for building its fixed-line network.
In consumer products, Metro Pacific announced the sale in the first quarter of its interest in Philippine Cocoa Corp. to Nestle Philippines, Inc. The sale -- which contributed to other income rising 101 per cent to P55.5 million -- is part of a strategy of focusing the division on personal care, packaged water and other beverages. The division performed well in the quarter, paced by the market leadership of such products as Eskinol and Block and White skin creams, Wilkins Distilled Drinking Water and Softee and Gem tissue-paper products. New production facilities in Cavite are also beginning to yield improved efficiencies and provide increased capacity to meet market demand.
The packing group experienced a disappointing first quarter. Steniel continued its reorganization which will involve concentrating its corrugated-packaging operations in a facility in Cavite. The relocation of equipment is expected to be completed within the first half and, once completed, will position the operation for improvement.
Mr. Nazareno continued: "Property development continues to provide exciting returns, and the practice of investing only where the fundamental indicate a strong appreciation in value will ensure the continued success of our investments. In telecommunications, the growth of Smart's cellular subscriber base is a tribute to the focus of the company's management. As a fully integrated telecommunications, Smart offers unrivaled opportunities for further growth in its fixed line, international and paging services, as well as its core cellular business.
"Our consumer products division has been strengthened by the disposal of Philippine Cocoa, and will continue to concentrate on maintaining and developing its leadership position. The strong demand for personal care and beverages products, coupled with its well-established brands, positions the division for further growth during the year.
"Metro Pacific continues to adopt a policy of prudent financial management, transparency of reporting and delivering consistent growth in fully diluted earnings. Prospects remain promising for 1997 and the long term."
For further information, please contact:
Seumas Gallacher Tel: (632) 811
0053
Executive Director
Special Assistant to the President
Metro Pacific Corporation
Chris Young Tel: (632) 811 0029
Finance Director
Metro Pacific Corporation
Robert Sherbin Tel: (852) 2842
4380
Group Vice President
Corporate Communications
First Pacific Company Limited
Company information can also be accessed on:
Internet: irasia.com/listco/hk/firstpac
E-mail: info@firstpac.com.hk
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