SMC Q1 profit down by almost half

MANILA, Philippines — Diversified conglomerate San Miguel Corp. (SMC) finished a challenging first quarter with higher revenues, but saw its profit plunge by nearly half.

SMC’s reported net income fell by 48 percent to P22.5 billion in the first quarter from P43.4 billion in the same period last year due to the P21.9 billion gain from the partial sale of power assets in the first quarter of 2025 and forex loss in 2026.

Revenues, however, rose by 19 percent year-on-year to P428.3 billion as a result of broad growth across its major businesses.

SMC chairman and CEO Ramon Ang said the group’s businesses performed well during the quarter, supported by steady demand and the hard work of its teams across the group.

“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,” Ang said.

Gains in its food and spirits businesses, alongside the stable performance of beer and disciplined cost management enabled San Miguel Food and Beverage Inc. to post a two percent improvement in net income to P11.8 billion during the quarter.

Revenue of the food and beverage segment increased by four percent to P103.1 billion.

Net income of San Miguel Global Power, meanwhile, declined to P23.9 billion mainly due to the P21.9 billion gain from the asset sale recorded in the first quarter of 2025.

The power business’ revenues expanded by 26 percent year-on-year to P53.6?billion, fueled in part by contributions from five battery energy storage system facilities, as well as power supply agreements for the Mariveles and San Roque power plants.

Petron Corp. also saw its net income plummet by 56 percent to P1.8 billion in the first quarter from P4 billion a year ago as refinery output declined for both Philippines and Malaysia operations.

Revenues, however, accelerated by 27 percent to P246 billion on the back of strong volume growth and higher average Dubai crude prices.

SMC said the infrastructure group also delivered strong revenues at P10.4 billion, up by seven percent year-on-year, as a result of higher traffic volumes and continued operational improvements across all toll roads.

The conglomerate’s cement business, which includes Eagle Cement, Northern Cement and Southern Concrete Industries, generated revenues of P9.2 billion, three percent higher year-on-year, as strong volume growth outpaced lower average selling prices.