Cosmos income jumps 46% to P521M

Cosmos Bottling Corp. showed its value in the RFM family, as well as its big potential to future owner San Miguel Corp., by posting an impressive 46-percent gain in its net income for the first half of 2001.

In a report to stockholders yesterday, CBC president Antonio Panajon said in the six-month period, the company’s earnings reached P521 million and is trending towards the P1.1-billion income target for the whole year.

He said in the same period, net sales improved by 36 percent to P3.4 billion, brought about by a steady volume growth and a P10 price increase per case.

"The warm weather, the sustained ads campaign, widened distribution reach and expansion projects allowed us to push growth to greater heights," Panajon said. "More importantly, we have by this time brought out major brands Sarsi Rootbeer, Sunkist Orange and Pop Cola closer to the hearts of millions of Filipino consumers and the number keeps growing."

Cosmos is now the second largest softdrinks maker in the country with an estimated 26-percent market share, despite aggressive moves by its competitors in the P40-billion softdrinks industry to maintain their position.

"Much of the credit for this development should be attributed to greater support that your company has committed for the image building of the flagship brand," Panajon said. He added that growth was also attributed to the wider distribution network that has the company penetrating 99 percent of stores – mostly sari-sari stores – in the Greater Manila area.

Cosmos was founded by the Wong Family in 1918 and was acquired by the Concepcion-controlled RFM Corp. in 1989. From net sales of P400 million on a sales volume of a modest 16 million cases, revenues are expected to hit P7 billion this year with volume sales reaching 100 million cases.

From a nine percent share 12 years ago, Cosmos steadily gained a larger piece of the softdrinks market producing a daily average of over 300,000 cases daily in its 12 bottling plants nationwide.

The company has five main brands: Pop Cola, Sarsi, Jaz Cola, Sunkist Orange and RC Cola.

Before the end of this year, Cosmos will be absorbed into the San Miguel group with the sale of RFM’s 83.2-percent stake to major competitor Coca-Cola Bottlers Phils. Inc. (CCBPI), a 65-percent subsidiary of SMC, and the Atlanta-based The Coca-Cola Co.

The acquisition carries an enterprise value of P15 billion for 100 percent of CBC on a fully diluted basis. – Conrado Diaz Jr.