SAN MIGUEL CORP. (SMC) said it might proceed investing in projects aligned with domestic growth despite a pointy decline in first-quarter (Q1) net income brought on by the absence of one-off gains booked last yr and foreign exchange losses.
“Our businesses performed well in the primary quarter, supported by regular demand and the exertions of our teams across the group,” SMC Chairman and Chief Executive Officer Ramon S. Ang said in a press release on Monday.
“While global conditions remain difficult, we’ll stay disciplined in how we operate, serve our customers well, and proceed investing where we will support our country’s growth,” he added.
For the primary quarter, SMC reported a decline in consolidated net income to P22.5 billion from P43.4 billion a yr earlier, mainly attributable to the absence of a P21.9-billion one-off gain from the partial sale of power assets in 2025, in addition to foreign exchange losses booked in 2026.
Despite the lower bottom line, consolidated revenues for the January-to-March period rose 19% to P428.3 billion, driven by growth across the corporate’s core businesses.
The rise was supported by higher fuel and oil volumes and movements in global oil prices, in addition to additional contributions from the energy business and regular volume growth within the food segment.
Consolidated operating income climbed 31% to P59.6 billion, boosted by higher revenues and improved margins within the energy business, which helped offset margin pressure in Petron Corp.
SMC’s food and beverage unit San Miguel Food and Beverage, Inc. (SMFB) reported a 2% increase in net income to P11.8 billion as revenues grew 4% to P103.1 billion.
The advance was driven by gains within the food and spirits segments, regular performance from beer, and tight cost management.
San Miguel Foods reported revenues of P49.6 billion, up 7%, supported by growth within the feeds segment and regular demand for branded products equivalent to Magnolia dairy, coffee, and Purefoods meats.
San Miguel Brewery, Inc. posted consolidated revenues of P36.8 billion, reflecting regular performance compared with the previous yr. Domestic revenues reached P32.7 billion, supported by price adjustments amid volume and value pressures, including higher excise taxes. Operating income held at P7.9 billion, while net income stood at P6.2 billion, aided by cost controls and continued investments in brand and channel initiatives.
Ginebra San Miguel, Inc. posted a 3% increase in revenues to P16.7 billion, with operating income at P2.8 billion and net income at P2.3 billion.
San Miguel Global Power Holdings Corp.’s net income slipped to P23.9 billion from the previous yr, largely attributable to the P21.9-billion gain from an asset disposal recognized in the primary quarter of 2025. Revenues, nonetheless, increased 26% yr on yr to P53.6 billion, supported by output from five battery energy storage system facilities and power supply contracts for the Mariveles and San Roque power plants.
“Offtake volumes amounted to six.5 million MWh, down 13% yr on yr, largely reflecting the deconsolidation of the Ilijan Power Plant and Batangas Combined Cycle Power Plant. Income from operations increased 163% to P28.1 billion, driven by topline growth, improved gross profit margins, and better contribution from the BESS facilities,” SMC said.
Petron posted a net income of P1.8 billion in the primary quarter of 2026, down 56% from P4.0 billion a yr earlier, following lower refining volumes in each its Philippines and Malaysia operations.
Operations on the Port Dickson refinery have been suspended since November 2025 after Tropical Storm Senyar damaged its product jetty, while Petron Bataan underwent planned maintenance. The impact of those interruptions was further compounded by rising geopolitical tensions within the Middle East.
Revenues climbed 27% to P246.0 billion in the primary quarter, lifted by stronger sales volumes and better average Dubai crude prices, which increased to $86 per barrel from $77 per barrel a yr earlier.
“Excluding trading transactions from the corporate’s operations in Singapore, Petron recorded sales volume of 25.7 million barrels within the Philippines and Malaysia, 7% lower than the previous yr’s 27.6 million barrels, attributable to lower production. Operating income declined by 36% to P6.1 billion,” the corporate said.
“Margins were squeezed by higher product costs, with the absence of refinery production in Malaysia and reduced output within the Philippines,” the corporate added.
SMC Infrastructure recorded P10.4 billion in revenue in the primary quarter of 2026, up 7%, driven by higher traffic and efficiency gains across its toll road network, with average each day vehicle volume rising 3% to 1.1 million. Operating income increased 12% to P6.0 billion as revenue growth outpaced higher costs.
SMC’s cement business, which incorporates Eagle Cement Corp., Northern Cement Corp., and Southern Concrete Industries, Inc., posted P9.2 billion in revenue, a 3% increase, as stronger sales volumes offset softer pricing in a competitive market.
Growth was supported by wider demand, fewer imported shipments after anti-dumping duties took effect in February, and advance buying ahead of March price increases. Operating income got here in at P1.7 billion, also up 3% from a yr earlier.
On Monday, SMC shares rose 0.07% to P70 apiece. — Alexandria Grace C. Magno