SAN Miguel Corp. saw its consolidated net income fall by 44 percent in the first half given the absence of a major one-time gain booked a year earlier and despite stronger sales and operating income across several businesses.
In a regulatory filing on Friday, San Miguel reported a consolidated net of P37.67 billion for January to June, down from P66.77 billion in the same period in 2025.
The decline came even as consolidated sales climbed 34 percent to P964.10 billion from P718.21 billion, while operating income rose 17 percent to P102.29 billion from P87.66 billion.
San Miguel attributed the increase in sales mainly to higher average selling prices and a six-percent increase in Petron Corp.'s sales, additional revenue recognized by its energy business from the recovery of incremental power supply costs incurred in 2022, higher revenues from new power supply agreements, the full six months of operations of five battery energy storage system facilities, and stronger volume growth in its food business.
However, the improvement at the operating level was more than offset by a reversal in other income.
San Miguel recorded P21.21 billion in net other charges in the first half versus P31.65 billion in net other income a year earlier.
The 2025 figure included a P21.93-billion gain from the fair valuation of residual 33-percent interests in South Premiere Power Corp., Excellent Energy Resources Inc. and Ilijan Primeline Industrial Estate Corp. following the dilution of San Miguel Global Power Holdings Corp.'s ownership from 100 percent to 33 percent.
The group also recognized a P22.54-billion net foreign exchange loss in the first half compared with an P11.80-billion net foreign exchange gain in the same period last year.
As a result, income before income tax dropped 44 percent to P46.82 billion from P84.23 billion.
Net income attributable to parent equity holders likewise declined 73 percent to P11.09 billion from P40.78 billion.
Despite the bottom-line decline, San Miguel's core operating businesses posted mixed but generally stronger sales during the period.
San Miguel Food and Beverage Inc. increased consolidated sales by two percent to P205.25 billion, although its operating income and net income declined to P28.81 billion and P22.05 billion, respectively.
The food division was a key contributor to topline growth, with revenues rising five percent to P99.27 billion following volume gains in animal nutrition and health and dairy as well as favorable selling prices in prepared and packaged food.
San Miguel Global Power's revenues rose 27 percent to P101.86 billion, supported by additional power supply agreements, battery energy storage facilities and the recovery of incremental power supply costs. Its segment result increased to P41.97 billion from P22.12 billion.
Petron, meanwhile, generated P597.82 billion in external sales, up from P382.02 billion a year earlier, as higher average selling prices and increased sales volumes lifted its contribution to the group.
San Miguel's infrastructure business also remained relatively steady, with external sales rising to P20.03 billion from P19.42 billion, while its segment result stood at P11.12 billion.
The conglomerate's cement business, however, saw external sales decline to P17.71 billion from P17.49 billion, with the segment falling to P3.16 billion from P3.49 billion.
The real estate and other businesses posted external sales of P13.27 billion, up from P10.64 billion, while its segment result increased to P3.29 billion from P2.61 billion.
San Miguel shares dropped P0.95 or 1.45 percent, to a close of P64.75 each on Friday.
