Philippine food and drink company, San Miguel, said its net profits in 2004 rose by 10% to $147m, due to record beer sales and a fast growing economy.

But profits still came below analysts expectations due, in part, to the company’s rising debts as it pursues aggressive overseas acquisitions.

The company’s debt-to-equity position stood at just 6.8% in 2003 and then reached 28.9% by September 2004. It could reach 103.7% if it continues with plans to purchase Australian dairy producer, National Foods.