SMFB reports P11.8B first-quarter net income amid challenging conditions

Metro Manila, Philippines – San Miguel Food and Beverage, Inc.’s (SMFB) first-quarter net income rose 2% to P11.8 billion, supported by gains in its food and spirits businesses, stable beer performance, and disciplined cost management amid a more uncertain operating environment.

Revenue increased 4% to P103.1 billion in the three months ended March 31, 2026, while income from operations climbed 3% to P15.7 billion. Earnings before interest, taxes, depreciation and amortization rose 4% to P20.4 billion, with margins steady at 20%.

The company said demand remained stable across its main categories, though geopolitical tensions, fuel price volatility, and other cost pressures continued to weigh on the operating environment.

“We cannot control how global conditions will evolve, but we can control how prepared we are,” SMFB Chairman Ramon S. Ang said. “We will stay disciplined, manage our costs carefully, and continue investing across our supply chain to help ensure a stable and reliable food supply, especially in this environment.”

SMFB’s food business posted a 7% increase in revenue to P49.6 billion, driven by its feeds segment and sustained demand for branded products, including Magnolia dairy and coffee products and Purefoods meats. Operating income rose 10% to P4.9 billion, while net income climbed 8% to P3.3 billion.

The beer business recorded P36.8 billion in revenue, reflecting stable performance for the period. Domestic revenue reached P32.7 billion, supported by price adjustments amid volume and cost pressures, including higher excise taxes. Operating income was maintained at P7.9 billion, while net income stood at P6.2 billion, helped by cost controls and continued investments in brand and channel initiatives.

The beer business continued to support core brands such as San Miguel Pale Pilsen and Red Horse Beer, alongside newer products like San Miguel Mango Yuzu, through marketing and channel initiatives.

International beer operations contributed US$68.3 million in revenue, despite the impact of the ongoing Middle East crisis on export sales.

The spirits business reported a 3% rise in revenue to P16.7 billion, with operating income at P2.8 billion and net income at P2.3 billion, also supported by brand-building initiatives and disciplined cost management.

SMFB said it will continue investing in its operations and supply chain while maintaining cost discipline and strengthening its core businesses for long-term growth.