Conglomerate San Miguel Corp. (SMC) said consumer demand and infrastructure activity remained resilient in the first quarter even as fuel volatility and global tensions continued reshaping operating conditions across industries.
“Our businesses performed well in the first quarter, supported by steady demand and the hard work of our teams across the group,” SMC chair and CEO Ramon S. Ang said in a statement on Friday.
“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,” he added.
Key earnings drivers
Consolidated revenues climbed 19 percent to P428.3 billion while operating income jumped 31 percent to P59.6 billion, driven by stronger energy margins, higher fuel revenues and sustained growth in food.
Reported net income however fell to P22.5 billion from P43.4 billion a year earlier after the absence of a P21.9-billion one-off gain booked in 2025 from the partial sale of power assets.
San Miguel Food and Beverage’s earnings rose 2 percent to P11.8 billion as steady demand for Magnolia dairy, coffee and Purefoods products helped offset softer consumer conditions.
Beer volumes meanwhile faced pressure from higher excise taxes and cautious spending, although price increases and tighter cost controls helped stabilize profitability during the quarter.
Infrastructure revenues rose 7 percent to P10.4 billion as daily traffic across toll roads climbed to 1.1 million vehicles, reinforcing how mobility and economic activity remained active despite higher fuel prices.
Power offsets refining weakness
San Miguel Global Power Holdings Corp. remained one of the group’s strongest earnings drivers after operating income surged 163 percent to P28.1 billion, helped by battery energy storage system facilities and power supply agreements.
Meanwhile, Petron Corp. saw profits plunge 56 percent to P1.8 billion after refinery shutdowns, rising crude prices and Middle East tensions squeezed refining margins.
Petron’s Port Dickson refinery in Malaysia has remained shut since November after Tropical Storm Senyar damaged its jetty, while the Bataan refinery also underwent maintenance during the quarter.
San Miguel’s cement business meanwhile posted stronger volumes after anti-dumping duties curbed imports, although aggressive competition continued pressuring selling prices across the industry.
—Edited by Miguel R. Camus
