San Miguel (SMC) Q2 2025 earnings summary

Executive summary

• Net income for the first half of 2025 surged to P66,767 million, up 392% year-over-year, driven by a one-time gain from the fair valuation of investments and foreign exchange gains.

• Revenue declined 9% to P718,205 million compared to the same period last year, mainly due to lower sales in fuel, oil, and energy segments following asset deconsolidation and price declines.

• Operating income increased 3% to P87,658 million, with strong contributions from food, beverage, and infrastructure segments offsetting declines elsewhere.

• Equity attributable to parent rose 20% to P339,724 million as of June 30, 2025, reflecting robust earnings and investment gains.

• Cash and cash equivalents increased by 9% to P321,139 million, supporting ongoing investments and debt service.

Financial highlights

• Gross profit rose 1% to P134,867 million despite a 9% drop in sales, as cost of sales fell 11% year-over-year.

• Net income attributable to parent was P40,780 million, a turnaround from a P8,703 million loss in the prior year.

• Earnings per share (basic and diluted) reached P15.10, up from a loss of P5.64 per share year-over-year.

• Total assets stood at P2,617,786 million, down 2% from December 2024, mainly due to deconsolidation of certain energy assets.

• Total liabilities decreased 6% to P1,879,892 million, reflecting lower loans payable and accounts payable.

Outlook and guidance

• Management expects continued strong performance in food, beverage, and infrastructure, with challenges persisting in fuel, oil, and cement due to market conditions.

• Ongoing investments in infrastructure and energy projects, including MRT 7 and BESS, are expected to support long-term growth.

• No material liquidity or cash flow issues are anticipated in the next 12 months.