San Miguel Corporation

For 9M 2025, San Miguel Corporation consolidated revenue declined 7% to PHP 1.1 trillion, operating income increased 13% to PHP 137.4 billion, net income rose to PHP 78.6 billion, core net income rose 54% to PHP 60.3 billion, and EBITDA increased 16% to PHP 194.3 billion. Margin expanded from 10.3% to 12.6%. By business, San Miguel Food and Beverage posted net sales of PHP 302.9 billion, operating income of PHP 44.7 billion, net income of PHP 33.7 billion and EBITDA of PHP 58.4 billion; Petron reported revenue of PHP 594.9 billion, operating income of PHP 26.6 billion and net income of PHP 9.7 billion; SMGP revenue was PHP 118.8 billion, operating income PHP 34.8 billion, EBITDA PHP 54.1 billion and net income PHP 42.4 billion. Management did not provide formal next-quarter revenue or EPS guidance, but said Q4 is typically the strongest period for Food, Beer and Spirits, and SMGP said 2026 EBITDA should be at least around PHP 70 billion.

The lead commentary emphasized resilience, discipline and long-term nation-building themes rather than short-term growth for its own sake. Management said the group is focusing on margin expansion through cost discipline, lower raw material costs and operational efficiency while continuing to invest in food security, energy security and infrastructure. The tone was upbeat and confident, but grounded in the view that market headwinds, weak domestic demand and political concerns remain part of the backdrop.

The financial commentary centered on improving profitability despite softer revenues. Management cited lower crude and commodity prices, reduced power revenue from the SPPC and EERI deconsolidation, and slower beverage demand, but highlighted that operating income still rose to PHP 137.4 billion and margins expanded to 12.6%. On the balance sheet, consolidated cash was PHP 344 billion, total assets were PHP 2.7 trillion, liabilities were PHP 1.9 trillion, stockholders’ equity was PHP 733 billion, interest-bearing debt was PHP 1.6 trillion, and parent net debt was PHP 701.4 billion. On capital allocation and funding, SMGP said it expects to refinance upcoming maturities, including January and December 2026 perps, largely through peso DCM and other financing sources, with liquidity available as backstop.

Analysts focused on the Meralco claim, alcohol pricing and volume trends, Petron inventory losses, and the funding/capex plan for SMGP’s power growth. Management said the first Meralco claim was PHP 5.1 billion and that Meralco has already paid two of six installments; the second claim is a little over PHP 29 billion, with about PHP 15 billion still unaccrued, and resolution may slip into early next year. On Beer and Spirits, management said Q4 should be seasonally stronger, excise taxes are around 6% annually and are usually passed on early in the year, and market share remains strong: Beer is still 90%-plus and Ginebra is close to 50%-plus in white spirits. On Petron, inventory losses for 9M 2025 were roughly PHP 2 billion versus a little more than PHP 4 billion in 9M 2024.