The hard liquor arm of San Miguel Corporation posted a 9 percent increase in first-quarter net income to P2.3 billion, while revenues rose 3 percent to P16.7 billion.
Operating income climbed faster at 15 percent to P2.8 billion as GSMI benefited from better selling prices, lower molasses costs and improved distillery efficiencies.
The results extended GSMI’s long-running growth momentum after the company delivered its 12th straight year of volume growth in 2025 and sold a record 51 million cases.
Margins stay resilient
For investors, the latest quarter signals GSMI is still managing to defend profitability even as inflation and softer consumer spending continue to pressure the broader mass-market segment.
Gross profit rose 11 percent to P4.5 billion as the company leaned on pricing discipline, operational improvements and strong brand recall to cushion cost pressures.
“Even with cost pressures affecting the broader economy, we stayed focused and disciplined in execution, ultimately expanding our market share and further reinforcing our leadership in the domestic industry,” said Ramon S. Ang, president and CEO of GSMI.
Rather than depending purely on aggressive volume growth, GSMI has increasingly focused on protecting margins while keeping its nationwide distribution and market leadership intact.
Betting on brands and expansion
Its flagship “Kabayani Kita sa One Ginebra Nation” campaign remained a key sales driver, helping GSMI defend its Luzon dominance while expanding deeper into Visayas and Mindanao.
The company also continued pushing brands such as Vino Kulafu, GSM Blue and Primera Light Brandy to capture younger consumers and widen its reach across different price segments.
Beyond marketing, GSMI is investing in bottling modernization and expanding its second-hand bottle-washing network as it strengthens supply chains and prepares for longer-term growth.
The strategy reflects how liquor makers are increasingly balancing affordability, premiumization and operational efficiency as competition and consumer caution reshape the industry.
—Edited by Miguel R. Camus
