SMC Maintaining A Strong Focus On F&D

San Miguel Brewery, the beer unit of Philippine conglomerate San Miguel Corporation (SMC), plans to set up four new additional bottling plants in the Philippines within the next five years and a brewing facility each in Cambodia and Laos. As the dominant player in the Philippine F&D sector, SMC would have to pursue F&D opportunities outside the Philippines to sustain growth. Meanwhile, SMC continues its rapid and aggressive diversification into areas such as infrastructure, oil and gas, telecoms and mining. While we see potential long-term rewards from SMC's sectoral and geographical diversification plans, we maintain our view that SMC's prospects are far from certain, with many challenges to overcome before it can successfully reap the fruits from its diversification strategy.

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