MANILA, Philippines — Diversified conglomerate San Miguel Corporation (SMC) saw its consolidated net income diminish by nearly half in the first quarter of 2026, dropping to ₱22.5 billion from ₱43.4 billion during the same period last year, on Saturday, May 16, 2026, the steep bottom-line decline was primarily due to the absence of a massive one-time gain recorded in early 2025, alongside compounding foreign exchange losses.
Despite the drop in net profit, SMC demonstrated strong operational health, with consolidated revenues jumping 19 percent to ₱428.3 billion and operating income rising 31 percent to ₱59.6 billion, driven by steady demand across its core sectors.
- Net Income: ₱22.5 billion (down 48.2% from ₱43.4 billion)
- Consolidated Revenue: ₱428.3 billion (up 19% from ₱360 billion)
- Operating Income: ₱59.6 billion (up 31% from ₱45.5 billion)
- The One-Off Factor: Q1 2025 earnings were heavily inflated by a ₱21.9-billion accounting gain booked from the partial sale of power assets (the Chromite transaction).
1. Food and Beverage (SMFB)
San Miguel Food and Beverage Inc. booked a 2-percent increase in net income to ₱11.8 billion on revenues of ₱103.1 billion (up 4%), showing resilience against ongoing consumer spending cuts and high production costs.
- San Miguel Foods: Revenues rose 7% to ₱49.6 billion, fueled by poultry, feeds, and branded staples like Magnolia dairy and Purefoods meats. Net income climbed 8% to ₱3.3 billion.
- San Miguel Brewery Inc.: Posted ₱36.8 billion in revenue, with net income flattening at ₱6.2 billion as price adjustments absorbed higher excise taxes.
- Ginebra San Miguel Inc.: Revenues grew 3% to ₱16.7 billion, yielding a net income of ₱2.3 billion.
2. San Miguel Global Power
The energy unit saw a 26-percent revenue surge to ₱53.6 billion, driven by new capacity additions from five Battery Energy Storage System (BESS) facilities and power supply contracts from the Mariveles and San Roque plants. Operating income soared 163% to ₱28.1 billion due to widened margins, though its net income fell to ₱23.9 billion solely because the ₱21.9-billion asset-sale gain was no longer on the books.
3. Fuel and Oil (Petron Corporation)
Petron reported a 56-percent plunge in net income to ₱1.8 billion (down from ₱4.0 billion in Q1 2025), rendering a massive squeeze on the group’s overall profitability.
- The Disruption: Total sales volumes dropped 7% to 25.7 million barrels due to major refinery constraints. The Port Dickson refinery in Malaysia has remained entirely shut down since November 2025 following storm damage to its product jetty, while the Petron Bataan facility underwent extensive scheduled maintenance.
- Revenue Growth: Ironically, revenues still rose 27% to ₱246.0 billion, pushed up purely by higher international Dubai crude prices, which averaged $86/barrel in Q1 2026 compared to $77/barrel in 2025 amidst escalating Middle East geopolitical risks.
4. Infrastructure and Cement
- SMC Infrastructure: Revenues rose 7% to ₱10.4 billion, lifting operating income 12% to ₱6.0 billion. Combined average traffic across SMC-operated toll roads reached 1.1 million vehicles daily.
- Cement Business: Eagle Cement and other units recorded consolidated revenues of ₱9.2 billion (up 3%), overcoming lower selling prices in a highly competitive market through aggressive volume expansion.
“Our businesses performed well in the first quarter, supported by steady demand and the hard work of our teams across the group. While global conditions remain challenging, we will stay disciplined in how we operate, serve our customers well and continue investing where we can support our country’s growth.” — Ramon S. Ang, SMC Chairman and CEO
