San Miguel F&B earned 4% less in Jan-Jun

MANILA, Philippines — San Miguel Food and Beverage Inc. (SMFB) posted a 4-percent decline in first-half net income as consumers tightened spending amid inflation and slower economic growth, although steady demand for its food products helped lift revenues.

The company said on Wednesday that net income for the first six months of 2026 fell to P22.1 billion from P23 billion a year earlier.

READ: SMC food, beverage unit posts P33.7-B income

Operating income also slipped 4 percent to P28.8 billion.

Earnings before interest, taxes, depreciation and amortization (Ebitda) declined by one percent to P38.8 billion, with the Ebitda margin settling at 19 percent.

Despite softer earnings, consolidated revenues rose 2 percent to P205.3 billion, supported by continued growth in its food business.

Gross profit was steady at P58.4 billion, reflecting higher sales and continued cost management efforts.

The company said inflation, slower economic growth and geopolitical disruptions weighed on consumer spending and affected some export markets during the period.

“Our business remained resilient through the first half of the year, supported by the strength of our operations and the hard work of our teams across the businesses,” SMFB chair Ramon Ang said.

“We are managing our costs carefully, adding capacity where demand is growing and keeping our brands within reach,” Ang added.

The food business remained the company’s growth driver, with revenues increasing 5 percent to P99.3 billion.

The segment’s operating income rose 2 percent to P8.8 billion, while net income climbed 8 percent to P6.4 billion.

The beer business continued to contribute the biggest share of earnings, although revenues slipped one percent to P73.7 billion as elevated inflation and the weaker peso prompted consumers to become more selective with discretionary spending.

Domestic beer revenues held steady at P66 billion, supported by a price adjustment implemented earlier this year to offset higher excise taxes.

READ: San Miguel Q1 profit nearly halved

International operations generated $128.5 million in revenues, down from a year ago due to shipping disruptions in the Middle East.

Operating income for the beer business dropped 11 percent to P14.4 billion, while net income declined 12 percent to P11.4 billion.

Meanwhile, the spirits business posted flat revenues of P32.3 billion as higher prices offset softer sales volumes.

Even so, profitability improved, with operating income rising 8 percent to P5.4 billion and net income increasing 3 percent to P4.4 billion.

SMFB ended the first half with P205.3 billion in total equity, up 4 percent, alongside improved liquidity and leverage ratios. INQ