MANILA — San Miguel Corporation reported a 40% drop in net income to ₱47.3 billion for the first nine months of the year, driven by unrealized foreign exchange losses and the absence of a previous year-off gain from a power asset transaction.
Excluding non-core items and the 2025 Chromite transaction gain, core earnings remained flat compared to the previous year as elevated input costs and higher interest expenses squeezed margins. Despite the profit decline, consolidated revenue grew 34% to ₱1.5 trillion, fueled by strong top-line performance across the conglomerate’s fuel, power, food, and infrastructure sectors.
Operating income rose 3% to ₱141.8 billion, while earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 7% to ₱208.5 billion.
“The operating environment remained challenging across many sectors during the period,” San Miguel Chairman and Chief Executive Officer (CEO) Ramon S. Ang said. “While market conditions affected our businesses to varying degrees, our diversified portfolio helped provide stability across the group.”
Business Unit Performance
- Energy: San Miguel Global Power Holdings Corporation recorded a 53% surge in operating income to ₱53.4 billion, supported by a 25% revenue jump to ₱149.1 billion driven by new 2025 plants, cost recoveries, and fresh power supply agreements. Net income held steady at ₱42.6 billion, matching the prior-year period which included a ₱21.9 billion windfall from the Chromite deal.
- Infrastructure: SMC Infrastructure lifted profit by 35% to ₱14.5 billion due to foreign exchange gains and stronger contributions from the New NAIA Infra Corporation and Manila North Harbour. Revenue climbed 4% to ₱30.9 billion, even as higher pump prices caused average daily traffic to slip 1% to 1.06 million vehicles.
- Petroleum: Petron Corporation saw net income tumble 44% to ₱5.4 billion, with operating profit dropping 28% to ₱19.1 billion. Although revenue surged 56% to ₱928.2 billion on a 3% volume increase to 103.5 million barrels across the Philippines, Malaysia, and its Singapore trading arm, margins were compressed by higher freight rates, import premiums, Port Dickson refinery constraints in Malaysia, and a 29% rise in Dubai crude to an average of $92 per barrel.
- Food and Beverage: San Miguel Food and Beverage Inc. experienced a 9% decline in net income to ₱30.6 billion, affected by inflation and slower household spending, alongside increased commodity and marketing costs. Consolidated sales edged up 2% to ₱309.6 billion.
- San Miguel Foods profit slipped 7% to ₱8.3 billion despite a 6% revenue increase to ₱151.4 billion, weighed down by lower poultry prices and cost pressures.
- San Miguel Brewery Inc. posted a 14% drop in net income to ₱16.1 billion as sales dipped 1% to ₱109.2 billion, with domestic sales at ₱96.7 billion and international sales dropping 5% to $206.9 million amid Middle East tensions.
- Ginebra San Miguel Inc. bucked the consumer slowdown, lifting net income 3% to ₱6.5 billion through cost efficiencies as revenue rose 1% to ₱48.9 billion.
- Cement: Profit from cement operations fell 22% to ₱2 billion as rising raw material and power expenses from Middle East conflicts offset a 3% revenue increase to ₱26.4 billion.