SMFB first-half revenue rises 2% amid a more cautious consumer environment

Metro Manila, Philippines – San Miguel Food and Beverage Inc. posted a 2% increase in first-half 2026 revenue to P205.3 billion, led by continued growth in its Food business, even as inflation, slower economic growth and geopolitical disruptions weighed on consumer spending and some export markets.

Gross profit was steady at P58.4 billion, supported by revenue growth and efficient cost management. EBITDA slipped 1% to P38.8 billion, with margins at 19%, while operating income and net income both eased 4% to P28.8 billion and P22.1 billion, respectively.

Despite these pressures, overall demand across the company’s core categories remained relatively stable.

“Our business remained resilient through the first half of the year, supported by the strength of our operations and the hard work of our teams across the businesses,” SMFB Chairman Ramon S. Ang said. “We are managing our costs carefully, adding capacity where demand is growing, and keeping our brands within reach.”

Food revenue rose 5% to P99.3 billion, driven by its feeds segment 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 remained the Group’s largest earnings contributor, although revenue slipped 1% to P73.7 billion as consumers became more selective with discretionary spending amid elevated inflation and a weaker peso.

Domestic beer revenue was steady at P66 billion, as a price adjustment earlier in the year to offset higher excise taxes helped cushion softer volumes. International operations posted revenue of USD128.5 million, lower than a year earlier, as shipping disruptions in the Middle East affected deliveries to the region. Beer operating income fell 11% to P14.4 billion, while net income declined 12% to P11.4 billion.

Meanwhile, Spirits revenue was steady at P32.3 billion as higher pricing offset softer volumes. Profitability improved despite the lower volumes, with operating income rising 8% to P5.4 billion and net income increasing 3% to P4.4 billion.

SMFB ended the first half with total equity of P205.3 billion, up 4%, alongside improved liquidity and leverage ratios. The company expects consumer demand to remain under pressure in the near term, but said its market-leading brands and stronger financial position leave it well placed to manage the current environment. It added that it will continue investing in capacity, operations and its supply chain while maintaining cost discipline to support longer-term growth.