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By: Marvin Germo | December 5, 2019

Received Top Rating Bonds 

San Miguel Food and Beverage, Inc. (SMFB) has received its top credit rating from Philippine Rating Services Corporation for its planned fixed-rate bonds which is worth up to P15 billion. PRS Aaa was issued by the PhilRatings because a stable outlook was seen from these bonds. In fact, it is also the highest issue credit rating it can get. What it means to have a PRS Aaa credit rating is that the bonds are of the highest quality with minimal credit risk. The stability showed that the liability is likely to be maintained in the next 12 months.

Catch me in my live training events! (quick plug)

The heart of why I do these seminars is I want to build a generation of Filipinos with the right foundation in stock investing.  I want to bring smart investing to every Filipino around the world! If you would like to know more about how you could time the market check out the trainings below.

ICON Davao – November 30, 2019
Stock Smarts Manila – November 24, 25, December 8,9,15,2019
Stock Smarts Taiwan – February 15, 2020

Use Of Funds From Bonds

Before assigning a credit rating, PhilRatings consider many factors such as the company’s brand equity and its position in the market. As for SMFB, the credit issuer believes that it has strong brand equity and it has a leading market position considering all of its core businesses. The positive performance of the Philippine economy to boost the food and beverage industry has also been considered for this matter. SMFB disclosed that the bonds to be produced from the issuance of bonds will be used to redeem its Series 2 Preferred Shares worth P15-billion in March 2020.

SMFB as part of SMC

SMFB plays a major role as a core business of SMC. PhilRatings has noted SMFB’s conservative financial position considering the capital intensive nature of its businesses. It has a strong profitability performance and its cash flow is stable and healthy. As part of the SMC business family, it gives and takes good benefits from its parent—from realizing synergies from its relationship with the broader San Miguel Group to providing economies of scale in infrastructure and unlocking greater shareholder value by making a sizeable consumer market. SMFB reported a net income of P12.65 billion and consolidated sales of P226.36 billion during the first nine months of the year.

Q3 Income Fell

San Miguel Corporation (SMC) reported a drop in its earnings by 5% during the nine-month period of 2019 as Petron Corporation had been badly affected by the shrinking refining margins. The conglomerate presented on its website that the income fell to P39.7 billion from January to September. The third-quarter figures have not been disclosed yet. Instead, the company chose to present the accumulated earnings as of this quarter. For those who need this information, you better use this to manage your investments in this company.

I’m excited to share my 5th book overall and the 4th book in the Stock Smarts series, Stock Smarts: Breaking the Resistance – How to time your traders perfectly. The heart of this book is to teach you strategic ways on how to come in and buy and sell stocks in a way where you come as the market is headed up and come out as the market is headed down. The book is now out and exclusive via Marvin Germo Book Orders.
For more details and to order my other books: Marvin Germo Book Orders
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