Metro Manila, Philippines – San Miguel Corporation (SMC) posted consolidated core net income of P54.2 billion in the first half of 2026, up 48% from a year earlier, as its underlying businesses remained resilient despite volatile global markets, higher costs and cautious consumer spending.
Consolidated revenues rose 34% to P964.1 billion, driven by higher volumes and prices in its Fuel and Oil business, stronger contributions from Power, and continued growth in Food. Operating income increased 17% to P102.3 billion.
Reported consolidated net income was 44% lower at P37.7 billion, reflecting foreign exchange effects and other non-core items. Last year’s result also benefited from a P21.9 billion gain from the Chromite transaction which involved the de-consolidation of certain power assets.
“Our businesses performed well in the first half despite a more challenging operating environment. While cost and market pressures may continue, our underlying operations remain sound. We will stay disciplined on costs, continue improving efficiency, and invest in areas that support our long-term growth and the country’s broader economic development,” SMC Chairman and CEO Ramon S. Ang said.
Food and beverage
San Miguel Food and Beverage Inc. (SMFB) posted revenues of P205.3 billion in the first half, up 2%, as growth in its Food business helped offset softer consumer spending and disruptions in some export markets. EBITDA slipped 1% to P38.8 billion, with margins at 19%, while operating income and net income both declined 4% to P28.8 billion and P22.1 billion, respectively.
Food revenue rose 5% to P99.3 billion, driven by growth in feeds and sustained demand for branded products, including Magnolia dairy and coffee products, Purefoods Luncheon Meats and Pinoy Favorites, as well as its more affordable product lines. Operating income increased 2% to P8.8 billion, while net income rose 8% to P6.4 billion.
Beer revenue declined 1% to P73.7 billion as consumers became more selective with discretionary spending amid inflation and a weaker peso. Domestic beer revenue was steady at P65.9 billion despite softer volumes. International operations posted revenues of US$128.5 million, lower year-on-year as shipping disruptions in the Middle East affected deliveries to the region. Operating income fell 11% to P14.4 billion, while net income declined 12% to P11.4 billion.
Spirits revenue was steady at P32.3 billion as higher prices offset softer volumes. Profitability improved, with operating income rising 8% to P5.4 billion and net income increasing 3% to P4.4 billion.
Fuel and oil
Petron Corporation’s revenues rose 57% to P605.9 billion in the first half, driven by higher prices and sales volumes. Net income declined 27% to P3.8 billion, while operating income fell 17% to P12.6 billion, as geopolitical tensions in the Middle East pushed up crude prices, import premiums, freight costs, and other operating expenses.
Oil markets remained volatile during the period, with Dubai crude averaging US$91 per barrel, up 27% from the same period last year.
Consolidated sales volume rose 6% to 67.9 million barrels, driven by an 86% increase in trading transactions by the company’s Singapore subsidiary.
Infrastructure
SMC Infrastructure posted first-half revenues of P20.5 billion, up 3%, even as average daily traffic dipped 1% to 1.07 million vehicles. Elevated fuel prices weighed on road travel demand. Operating income was steady at P11.1 billion, while EBITDA increased 8% to P17.0 billion.
Power
San Miguel Global Power (SMGP) posted first-half revenues of P101.9 billion, up 27%, while operating income rose 90% to P42.0 billion.
Cement
SMC’s Cement business, which includes Eagle Cement Corporation, Northern Cement Corporation, and Southern Concrete Industries, Inc., posted first-half revenues of P18.2 billion, up 2%, as higher sales volumes and market share gains offset lower average selling prices amid intense competition and continued pressure from cement imports. Operating income declined 9% to P3.2 billion.
