SMFB revenue rises 2% as Food offsets weaker beer sales

San Miguel Food and Beverage Inc. (SMFB) posted a 2% increase in first-half 2026 revenue to ₱205.3 billion, as solid growth in its Food business helped offset weaker beer sales amid softer consumer spending, persistent inflation and global supply chain disruptions.

While revenue continued to expand, profitability eased as margin pressures and slower demand in some segments weighed on earnings. Gross profit was steady at ₱58.4 billion, while EBITDA slipped 1% to ₱38.8 billion. Operating income declined 4% to ₱28.8 billion, and net income fell 4% to ₱22.1 billion.

The Food business remained SMFB’s strongest growth driver, with revenue climbing 5% to ₱99.3 billion on higher feeds sales and sustained demand for branded products, including Magnolia dairy and coffee products, Purefoods luncheon meats, Pinoy Favorites and its value-oriented product lines. Operating income increased 2% to ₱8.8 billion, while net income rose 8% to ₱6.4 billion.

Beer, the group’s largest earnings contributor, recorded a 1% decline in revenue to ₱73.7 billion as consumers became more selective with discretionary spending. Domestic beer revenue held steady at ₱66 billion, with price adjustments implemented earlier this year to offset higher excise taxes helping cushion softer sales volumes.

International beer revenue declined to US$128.5 million, as shipping disruptions in the Middle East affected deliveries to key export markets. The segment’s operating income dropped 11% to ₱14.4 billion, while net income declined 12% to ₱11.4 billion.

The Spirits business posted flat revenue of ₱32.3 billion, as higher selling prices offset lower volumes. Operating income rose 8% to ₱5.4 billion, while net income increased 3% to ₱4.4 billion.

“Our business remained resilient through the first half of the year, supported by the strength of our operations and the hard work of our teams across the businesses,” SMFB Chairman Ramon S. Ang said. “We are managing our costs carefully, adding capacity where demand is growing, and keeping our brands within reach.”

SMFB ended the first half with total equity of ₱205.3 billion, up 4% from a year earlier, alongside stronger liquidity and improved leverage ratios.

The company expects consumer demand to remain under pressure in the near term but said it will continue investing in production capacity, operational efficiency and its supply chain while maintaining cost discipline to support long-term growth.