MANILA, Philippines – San Miguel Corporation (SMC) reported steady core earnings in the first nine months of 2026 despite higher operating costs, rising interest expenses and inflationary pressures affecting several of its businesses.
The conglomerate said its core income remained largely unchanged from the same period last year after excluding non-core items and a one-time gain from the Chromite transaction in 2025.
However, reported net income declined 40 percent to Php 47.3 billion, primarily due to unrealized foreign exchange losses and the absence of the previous year’s one-time gain.
Consolidated revenues surged 34 percent to Php 1.5 trillion, driven by contributions from its fuel and oil, power, food and infrastructure businesses.
Operating income increased 3 percent to Php 141.8 billion, although higher raw material prices and other input costs limited profitability.
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 7 percent to Php 208.5 billion.
SMC said stronger earnings from its power business, supported by facilities commissioned in 2025, helped offset weaker performances in fuel and oil, food and beverage, cement and packaging.
“The operating environment remained challenging across many sectors during the period. While market conditions affected our businesses to varying degrees, our diversified portfolio helped provide stability across the Group. We remain focused on disciplined execution and adapting to changing market conditions,” SMC Chairman and CEO Ramon Ang said in a statement Friday.
Food and beverage earnings decline
San Miguel Food and Beverage Inc. (SMFB) posted a 2 percent increase in consolidated revenues to Php 309.6 billion, supported by growth in its food and spirits businesses despite weaker beer sales.
However, inflation, slower economic growth and rising commodity costs continued to affect consumer spending and profitability.
Operating income fell 9 percent to Php 40.6 billion, while net income declined by the same percentage to Php 30.6 billion. EBITDA decreased 5 percent to Php 55.5 billion.
San Miguel Foods recorded a 6 percent increase in revenues to Php 151.4 billion, driven by its animal nutrition and health, processed meats and dairy businesses.
Despite higher sales, operating income declined 9 percent to Php 11.7 billion, while net income dropped 7 percent to Php 8.3 billion due to lower poultry prices, rising fuel and raw material costs, and foreign exchange pressures.
Meanwhile, San Miguel Brewery Inc. reported a 1 percent decline in revenues to Php 109.2 billion as weaker consumer spending affected sales volumes.
Domestic beer revenues reached Php 96.7 billion, while international revenues fell 5 percent to USD 206.9 million, partly due to the impact of the Middle East conflict on regional sales.
The brewery’s operating income declined 14 percent to Php 20.5 billion, while net income dropped 14 percent to Php 16.1 billion.
Ginebra San Miguel Inc., meanwhile, posted a 1 percent increase in revenues to Php 48.9 billion despite softer sales volumes.
Cost management and operational efficiencies helped lift operating income by 7 percent to Php 8 billion, while net income increased 3 percent to Php 6.5 billion.
Petron revenues surge, profits weaken
Petron Corporation recorded a 56 percent increase in revenues to Php 928.2 billion, supported by stronger retail sales in the Philippines and Malaysia.
Consolidated sales volume, including its Singapore-based trading operations, increased 3 percent to 103.5 million barrels.
However, higher crude oil prices, import premiums and freight costs weighed on profitability.
Dubai crude averaged USD 92 per barrel during the nine-month period, up 29 percent from a year earlier.
Operational constraints at Petron’s Port Dickson refinery in Malaysia also affected refining margins.
As a result, operating income declined 28 percent to Php 19.1 billion, while net income dropped 44 percent to Php 5.4 billion.
Infrastructure business posts higher earnings
SMC’s infrastructure business generated Php 30.9 billion in revenues, up 4 percent year-on-year.
Average daily traffic declined 1 percent to 1.06 million vehicles as higher fuel prices affected mobility.
Despite the decline in traffic volume, infrastructure EBITDA increased 12 percent to Php 26.6 billion.
Net income climbed 35 percent to Php 14.5 billion, supported by foreign exchange gains and higher contributions from New NAIA Infra Corp. and Manila North Harbour.
Power business drives operating income growth
San Miguel Global Power emerged as a major earnings contributor, with revenues rising 25 percent to Php 149.1 billion.
The increase was supported by newly commissioned power facilities in 2025 and additional power supply agreements that took effect in the middle of last year.
Operating income surged 53 percent to Php 53.4 billion, driven by cost recoveries and stronger contributions from power supply agreements.
Net income remained broadly unchanged at Php 42.6 billion, compared with the previous year’s results, which included a Php 21.9 billion gain from the Chromite transaction.
Cement operations face higher costs
SMC’s cement business reported a 3 percent increase in revenues to Php 26.4 billion, supported by slightly higher sales volumes amid declining traded cement imports.
However, rising raw material and electricity costs, partly linked to tensions in the Middle East, offset the revenue gains.
Operating income fell 14 percent to Php 4.4 billion, while net income declined 22 percent to Php 2 billion.
Despite challenges across several business segments, SMC maintained that its diversified operations helped stabilize overall performance during the first nine months of 2026.
The conglomerate said it would continue focusing on operational efficiency, disciplined execution and adapting to changing market conditions as inflation and elevated costs continued to affect the business environment.
