SMFB income climbs as food unit posts 30% profit jump in 2025

Insider Spotlight

• Net income climbed 13 percent to P46.3 billion in 2025 as food and spirits drove growth
• Consolidated revenues rose 5 percent to P419.1 billion, supported by strong food sales
• Food unit operating income surged 30 percent, the biggest contributor to earnings
• Beer revenues were flat domestically amid higher excise taxes, though overseas sales improved
  
  

San Miguel Food and Beverage Inc. (SMFB) posted a 13-percent rise in full-year net income to P46.3 billion, as strong gains in its food business and steady spirits demand offset softer consumer spending in the beer segment.

Consolidated revenues grew 5 percent to P419.1 billion, while operating income increased 9 percent to P61 billion, reflecting improved cost management and stronger contributions from higher-margin businesses.

Earnings before interest, taxes, depreciation and amortization (EBITDA) reached P80.6 billion, with EBITDA margin improving to 19 percent.

SMFB chair Ramon S. Ang said the results reflected strong execution across the company’s businesses.

“We will continue investing in our brands and operations so we can serve more Filipino families and deliver long-term value to our shareholders,” Ang said in a press statement.

Why it matters

SMFB’s results highlight the growing importance of its food segment, which has become a key earnings driver as beer demand faces structural pressure from rising excise taxes and cautious consumer spending.

Stronger agricultural and branded food operations also help diversify the conglomerate’s earnings base beyond alcoholic beverages.

By the numbers

The food business delivered record results, with revenues rising 6 percent to P196.3 billion.

Operating income surged 30 percent to P17.3 billion, while net income jumped 38 percent to P11.6 billion, driven by stronger feeds performance, higher poultry demand, and solid sales of branded products such as Magnolia dairy and Purefoods meats.

The beer business generated P155.4 billion in revenues, broadly steady from the previous year.

Domestic beer sales reached P139.1 billion but continued to face pressure from excise tax increases imposed since 2020. Despite this, the segment maintained operating income of P32.9 billion and net income of P26.5 billion through tighter cost controls and portfolio management.

International beer operations provided some growth, with revenues rising 3 percent to $285 million on higher volumes.

Meanwhile, the spirits segment remained a strong contributor, with revenues climbing 8 percent to P67.4 billion.

Operating income increased 21 percent to P10.4 billion, while net income rose 20 percent to P8.7 billion, supported by pricing actions and stable volumes.

What’s next

Management signaled continued investment in brands and operations, suggesting SMFB will focus on expanding food and beverage demand while protecting margins through pricing discipline and cost controls. —Vanessa Hidalgo | Ed: Corrie S. Narisma