Forex losses weigh down on San Miguel six-month earnings

MANILA, Philippines — San Miguel Corp. (SMC) saw its first-half profit fall by nearly half as foreign exchange losses and the absence of a one-time gain booked last year weighed on its bottom line.

On Friday, the conglomerate said consolidated net income decreased by 44 percent to P37.67 billion from P66.77 billion in the same period last year.

READ: San Miguel Q1 profit nearly halved

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The decline came despite stronger operations, with consolidated operating income rising by 17 percent to P102.29 billion.

“These were partially mitigated by the income from recovery of the incremental power supply costs by the energy business, and improved operations of the infrastructure business and the food division,” the company said.

One-time gain

SMC attributed the lower bottom line mainly to a one-time gain booked in 2025 from the fair valuation of its investments in South Premiere Power Corp., Excellent Energy Resources Inc. and Ilijan Primeline Industrial Estate Corp.

Such a gain followed the dilution of San Miguel Global Power’s ownership interest in these companies from 100 percent to 33 percent.

The conglomerate also recorded a net foreign exchange loss this year, reversing a net foreign exchange gain in the comparable period last year.

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Net income attributable to equity holders of the parent company likewise fell to P11.09 billion, mainly due to lower consolidated net income.

Fuel and oil

Meanwhile, SMC’s consolidated sales surged by 34 percent to P964.10 billion from P718.21 billion. Its fuel and oil business accounted for much of the top line.

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Petron Corp.’s revenues jumped 57 percent to P605.89 billion as elevated fuel prices, higher sales volume and the foreign exchange rate boosted sales.

San Miguel Global Power also posted a stronger first half. Its revenues rose by 27 percent to P101.86 billion. Operating income jumped 90 percent to P41.97 billion.

The food and beverage business, however, faced persistent inflation, slower economic growth and the impact of the US-Israel-Iran war on international operations.

San Miguel Brewery’s revenues decreased by one percent to P73.65 billion as slower consumer spending hurt domestic consumption while Middle East supply chain disruptions weighed down on overseas results. INQ