San Miguel (SMC) Q1 2026 earnings summary

Executive summary

• Consolidated sales for Q1 2026 rose 19% year-over-year to P428,321 million, driven by higher selling prices and volumes in fuel, energy, and food segments, partially offset by deconsolidation of certain energy subsidiaries.

• Net income declined 48% year-over-year to P22,465 million, mainly due to the absence of a one-time gain from fair valuation of investments in 2025 and a net foreign exchange loss in 2026.

• Operating income increased 31% year-over-year to P59,621 million, supported by higher revenues and improved margins in energy and food.

Financial highlights

• Gross profit increased 22% to P85,179 million, with gross margin at 20%.

• Operating margin improved to 14% from 13% year-over-year.

• Net income attributable to equity holders dropped 75% to P7,559 million.

• Earnings per share (EPS) fell to P2.31 from P11.67 year-over-year.

• Cash and cash equivalents rose 21% to P424,462 million from December 2025.

Outlook and guidance

• Management is closely monitoring the impact of Middle East geopolitical tensions on oil prices and supply chains, with risk mitigation strategies in place.

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