San Miguel Food and Beverage, Inc. (SMFB) reported a 9% decline in consolidated net income to P30.6 billion for the first nine months of 2026, as higher costs and weaker consumer demand pressured profitability despite modest revenue growth.

In a statement on Wednesday, the company said consolidated sales increased 2% to P309.6 billion in the January-to-September period, supported by growth in its food and spirits businesses. Operating income fell 9% to P40.6 billion as costs increased and the company raised spending on its brands amid more cautious consumer spending. SMFB’s results bring together San Miguel Foods, San Miguel Brewery, and Ginebra San Miguel, offering a combined view of demand across food, beer, and spirits.

Gross profit slipped to P85.7 billion, while earnings before interest, taxes, depreciation, and amortization (EBITDA) declined 5% to P55.5 billion. The resulting EBITDA margin was 18%. The gap between rising sales and falling profit measures shows costs climbing faster than revenue during the period.

“Our brands remain strong and our balance sheet has strengthened further. We will continue to invest in capacity and in our brands so we are ready when demand picks up. We look forward to a strong holiday season, traditionally our busiest time of the year,” SMFB Chairman Ramon S. Ang said.

His comments put the weight of the outlook on the fourth quarter, which includes the holiday season he described as traditionally the company’s busiest time of the year.

SMFB’s food business, San Miguel Foods, posted a 6% increase in sales to P151.4 billion, driven by its animal nutrition and health, processed meats, and dairy businesses. Sales from its animal nutrition and health unit rose 27% on sustained demand across its product portfolio.

“The Animal Nutrition and Health business led growth, with sales increasing 27%, supported by sustained demand across its product portfolio. Growth in the company’s branded food businesses also helped offset softer market conditions in its Protein and Flour operations,” SMFB said.

Despite the sales growth, San Miguel Foods’ operating income declined 9% to P11.7 billion, while net income fell 7% to P8.3 billion. The company attributed the declines to lower poultry prices and higher fuel, raw material, and foreign exchange-related costs.

San Miguel Brewery, Inc. reported a 1% decline in consolidated sales to P109.2 billion amid weaker consumer spending. Domestic beer sales totaled P96.7 billion, while international operations generated $206.9 million in revenue, down 5%, partly because of the impact of the Middle East conflict.

The beer business’s operating income fell 14% to P20.5 billion, while net income also declined 14% to P16.1 billion.

Ginebra San Miguel, Inc. reported a 1% increase in revenue to P48.9 billion despite softer sales volumes. Operating income rose 7% to P8 billion, while net income increased 3% to P6.5 billion, supported by cost management and operational efficiencies. That made Ginebra the only one of SMFB’s three businesses to grow net income during the period.

SMFB said total equity stood at P203.9 billion at the end of September, up 4% from the end of 2025.

In a separate regulatory filing on Wednesday, Ginebra San Miguel said its board had approved the appointment of Jacob Paolo L. Ang as a director, effective Nov. 4.

With the holiday quarter ahead, the variables to watch are holiday demand, the impact of the company’s brand and capacity spending, and the cost factors it cited for the nine-month decline — fuel, raw materials, and foreign exchange.

SMFB shares closed unchanged at P44.60 apiece on Wednesday. — Ashley Erika O. Jose