San Miguel Corporation reported significant revenue and profit increases for 2024 and the first nine months of 2025, but investors remain skeptical due to high leverage and one-off non-cash gains.
San Miguel Corporation (SMC) entered 2026 with impressive topline revenues but a more complex bottom line. Its latest audited annual results for 2024 showed consolidated revenues of P1.575 trillion, an improvement over prior years in operating scale. Net income after tax stood at P36.7 billion, with total assets of P2.677 trillion and equity of P676.4 billion.
For the first nine months of 2025, the company reported consolidated revenues of P1.09 trillion and net income of P78.6 billion, boosted by one-off valuation gains and strong operational performance across several segments. This was slightly lower year-on-year, reflecting softer commodity prices and the deconsolidation of some power assets. The profit rebound stemmed more from margin management and episodic accounting gains than pure growth.
SMC's capital structure highlights both promise and peril, with roughly P2.0 trillion in total liabilities exceeding its equity base. In late 2025, it raised P5.7 billion in fixed-rate notes at 6.3% and expanded its preferred share base. A key part of the 2025 profit was a non-cash, one-off gain of P21.9 billion from revaluing retained interests in South Premiere Power Corp., Excellent Energy Resources Inc., and Ilijan Power Infrastructure Corp. after reducing ownership to about one-third.
While this gain did not bring in cash, core net income rose 54% to P60.3 billion in the first nine months of 2025, driven by improved margins in food, spirits, infrastructure, and parts of the energy business. Investors focus on segments like San Miguel Global Power and the New Manila International Airport in Bulacan, which embody ambitions but also balance-sheet exposure. As of early 2026, SMC shares traded cautiously, underscoring the need for durable cash flows to sustain high leverage.
