San Miguel Food and Beverage, Inc.

For 9M 2025, consolidated revenues declined 7% to PHP 1.1 trillion, operating income increased 13% to PHP 137.4 billion, and EBITDA rose 16% to PHP 194.3 billion. Net income was PHP 78.6 billion, while core net income increased 54% to PHP 60.3 billion excluding fair-value and foreign exchange effects. Margin expanded from 10.3% to 12.6%. Guidance-wise, management said Q4 is typically the strongest period for Food, Beer, and Spirits, and SMGP expects around PHP 70 billion in EBITDA next year, with most funding needs tied to refinancing and project financing rather than immediate cash strain.

Management’s tone was constructive and resilient, emphasizing that the group delivered strong profitability even as revenues softened due to lower crude and commodity prices, deconsolidation of power assets, and weaker demand in some consumer categories. The strategy theme was margin expansion through cost discipline, efficiency, pricing actions, and selective growth in food, infrastructure, energy, and renewables. They also framed the business as long-term nation-building, with emphasis on food security, energy security, and infrastructure.

The financial commentary focused on margin improvement and balance-sheet strength. Chesca Tenorio said operating income rose 13% to PHP 137.4 billion on cost discipline and efficiency, with EBITDA at PHP 194.3 billion and net income at PHP 78.6 billion; she also noted the parent’s net debt was PHP 701.4 billion. On the balance sheet, total assets were PHP 2.7 trillion, liabilities PHP 1.9 trillion, equity PHP 733 billion, cash PHP 344 billion, and interest-bearing debt PHP 1.6 trillion. Paul Causon added that SMGP expects next year’s EBITDA to be at least around PHP 70 billion, with funding mainly coming from refinancing, vendor financing, and project-level debt.

Analysts focused on the Meralco claims, alcohol pricing and volumes, Petron inventory losses and crude outlook, power capacity additions, and SMGP funding needs. Management said the second Meralco claim is a little over PHP 29 billion, with about PHP 15 billion still unaccrued, and expects a resolution likely in January rather than this year. On Beer and Spirits, management said excise taxes are around 6% annually, Q4 volumes should improve seasonally, and price increases were minimal in Q3 and mostly on hold for Q4. For Petron, inventory losses were roughly PHP 2 billion YTD September 2025 versus a little more than PHP 4 billion last year; for crude, management sees Dubai crude around $65 per barrel near term, with some pressure possible in early 2026.