Conglomerate San Miguel Corporation (SMC) navigated a complex financial landscape in the first quarter of 2026, reporting a 48.1% drop in net income despite achieving robust, double-digit revenue growth across its diverse business portfolio.
The company’s net income for the first three months of the year landed at ₱22.5 billion. According to SMC, the sharp decline was not a reflection of operational weakness, but rather a result of a high base effect from the previous year and macroeconomic headwinds.
”The decline was primarily attributed to a high base effect from a ₱21.9 billion one-time gain from the partial sale of power assets recorded in the first quarter of 2025, as well as foreign exchange losses incurred during the first three months of 2026.”
Further pressure on the group’s bottom line came from its fuel and oil subsidiary, Petron Corporation. Petron reported a 56% plunge in its first-quarter net income to ₱1.8 billion, a downturn triggered by domestic and regional refinery disruptions.
Strong Top-Line Growth
Despite the net income contraction, SMC’s core operations remained highly resilient. Consolidated revenues jumped 19% to ₱428.3 billion, propelled by higher global oil prices and stable consumer demand. This strong top-line performance successfully lifted consolidated operating income by 31% to ₱59.6 billion.
Here is how SMC’s core business units performed during the first quarter:
- San Miguel Global Power Holdings Corporation: While its net income fell to ₱23.9 billion due to the asset-sale base effect, its operating income surged by an impressive 163% to ₱28.1 billion. The boost was driven by contributions from five new battery energy storage system (BESS) facilities.
- San Miguel Food and Beverage, Inc. (SMFB): SMFB recorded a modest 2% increase in net earnings to ₱11.8 billion. Robust demand for animal feeds and poultry managed to offset flat earnings at San Miguel Brewery Inc., which wrestled with higher domestic excise taxes.
- Infrastructure: Revenues from SMC’s infrastructure arm grew 7% to ₱10.4 billion, backed by a 3% increase in average daily vehicle traffic across its toll road network.
- Cement: The cement business posted a 3% revenue increase to ₱9.2 billion. Growth was aided by advance customer orders and newly implemented anti-dumping duties that curbed cheaper imported products.