San Miguel Food and Beverage profit falls 4% in first half as consumers cut back

Food sales remained resilient, but softer beer demand and cautious spending weighed on the company’s earnings.

San Miguel Food and Beverage Inc. reported a 4% drop in first-half profit to ₱22.1 billion, showing that even one of the country’s biggest consumer companies is feeling the pressure from cautious spending.

Revenue still grew 2% to ₱205.3 billion, supported by the continued strength of its food business, even as inflation, slower economic growth, a weaker peso, and geopolitical disruptions affected consumer demand and some export markets.

The company’s food segment provided a boost, with revenue rising 5% to ₱99.3 billion as Filipinos continued buying everyday products such as Magnolia dairy and coffee products, Purefoods luncheon meats, Pinoy Favorites, and other more affordable offerings. Net income from the segment increased 8% to ₱6.4 billion.

Beer remained San Miguel Food and Beverage’s biggest earnings contributor, but revenue slipped 1% to ₱73.7 billion as consumers became more selective with discretionary spending. Domestic beer sales stayed steady at ₱66 billion, while international operations faced challenges from shipping disruptions in the Middle East. Beer operating income declined 11% to ₱14.4 billion, while net income fell 12% to ₱11.4 billion.

Spirits revenue remained steady at ₱32.3 billion, with higher pricing helping offset softer volumes. Profitability improved, with operating income rising 8% to ₱5.4 billion and net income increasing 3% to ₱4.4 billion.

The latest results suggest that consumer spending has become more deliberate. Filipinos are still buying daily essentials, but many are cutting back on purchases they can easily postpone. That reality is pushing companies to work harder to keep prices competitive while protecting their bottom line.

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