San Miguel Corp., the country’s largest conglomerate, reported a 48 percent jump in first-half consolidated core net income to ₱54.2 billion, driven by robust performance across its power, fuel, and food operations despite the volatile global backdrop, elevated operational costs, and weaker consumer sentiment.

However, total consolidated net income fell 28 percent to ₱37.7 billion from ₱52.5 billion in the same period last year, the company disclosed to the Philippine Stock Exchange on Monday, Aug. 17.

The decline stemmed primarily from adverse foreign exchange movements and other non-core items, alongside a tough base comparison. Results in the prior-year period were bolstered by a non-recurring ₱21.9 billion gain from the de-consolidation of power assets under the Chromite transaction.

Consolidated revenue surged 34 percent year-on-year to ₱964.1 billion, fueled by higher volumes and pricing in its oil unit, expanded contributions from power generation, and steady demand in food products. Consolidated operating income grew 17 percent to ₱102.3 billion.

“Our businesses performed well in the first half despite a more challenging operating environment,” San Miguel Chairman and Chief Executive Officer Ramon S. Ang said. 
“While cost and market pressures may continue, our underlying operations remain sound. We will stay disciplined on costs, continue improving efficiency, and invest in areas that support our long-term growth and the country’s broader economic development,” he added.

Performance across San Miguel’s individual business units highlighted broader macroeconomic shifts in the domestic market.

San Miguel Food and Beverage Inc. posted a two percent revenue gain to ₱205.3 billion as strength in its food division counterbalanced softer consumer spending and trade disruptions in key export markets. Net income for the food and beverage unit declined four percent to ₱22.1 billion.

Refining and fuel marketing giant Petron Corp. reported a 57 percent surge in revenue to ₱605.9 billion, supported by higher global commodity prices and sales volume.

Net income, however, slid 27 percent to ₱3.8 billion as Middle East geopolitical tensions drove up crude costs, import premiums, freight rates, and overall operating expenses.

San Miguel Global Power posted a 27 percent revenue increase to ₱101.9 billion, while operating income nearly doubled, rising 90 percent to ₱42.0 billion.

SMC Infrastructure recorded a three percent rise in revenue to ₱20.5 billion, even as average daily traffic dipped one percent to 1.07 million vehicles due to high pump prices curbing motorist travel.

The group's cement business—comprising Eagle Cement Corp., Northern Cement Corp., and Southern Concrete Industries Inc.—reported revenue of ₱18.2 billion, up two percent.

Volume gains and market share expansion helped cushion lower average selling prices caused by intense domestic competition and cheap imports, though operating income dropped 9 percent to ₱3.2 billion. (James A. Loyola)