San Miguel (SMC) Q3 2025 earnings summary

Executive summary

• Achieved strong profitability and operational resilience for the nine months ending September 2025, with net income surging 112% year-over-year to PHP 78.6 billion, driven by a one-time gain from fair valuation and improved operations in key segments.

• Margin expansion and cost discipline offset lower revenues, with food, hard liquor, power, and infrastructure segments leading improvements.

• Sustainability initiatives recognized, with ESG impact assessments integrated into capital expenditure reviews and climate risk evaluations completed.

• Continued focus on nation-building, food and energy security, and sustainable development through infrastructure and energy expansion.

• Sales declined 7% to PHP 1.1 trillion, mainly due to lower average selling prices and volumes in Fuel and Oil and Energy, partially offset by strong Food and Beverage and Infrastructure performance.

Financial highlights

• Consolidated revenues declined 7% to PHP 1.1 trillion, mainly due to lower crude and commodity prices and deconsolidation of certain power assets.

• Operating income increased 13% to PHP 137.4 billion, with margins rising from 10.3% to 12.6%.

• Net income rose to PHP 78.6 billion, supported by fair valuation gains and forex gains; core net income (excluding one-offs and forex) up 54% to PHP 60.3 billion.

• Gross profit increased 7% to PHP 208.4 billion, while cost of sales dropped 10% due to lower input costs and deconsolidation of certain energy assets.

• Consolidated EBITDA up 16% to PHP 194.3 billion.

Outlook and guidance

• Growth and expansion strategy continues, supported by solid operating performance amid political and economic challenges.

• Full-year EBITDA for power expected to reach PHP 70 billion in 2026, with full contribution from battery projects.

• No significant price increases planned for Q4 in food, beer, or spirits; focus remains on volume growth and market share.

• Renewable energy portfolio expanding, with major hydropower and solar projects awarded and under development.

• No material liquidity or cash flow issues anticipated in the next 12 months; the Group remains in compliance with all debt covenants.