Ginebra San Miguel (GSMI) Q2 2026 earnings summary

Executive summary

• Delivered resilient first half 2026 results despite a challenging Philippine macro environment, with GDP growth slowing to 2.3–2.6% and inflation rising.

• Core net income grew 48% and consolidated operating income rose 17% year-on-year, driven by energy, food, spirits, and infrastructure.

• Reported net income fell 44% due to absence of prior year one-off gains and a PHP 16.5B forex loss; adjusted net income up 48% to PHP 54.2B.

• Sustainability initiatives advanced, including climate risk assessment, net zero roadmap, and social programs with measurable outcomes.

• Consolidated sales for the first half of 2026 were stable at P32,335 million for certain segments, with higher selling prices offsetting unfavorable market conditions.

Financial highlights

• Consolidated revenues reached PHP 964.1B, up 34% year-on-year, led by Petron, energy, and food segments.

• Operating income at PHP 102.3B, up 17% year-on-year; EBITDA rose 12% to PHP 141.9B.

• Reported net income at PHP 37.7B, down 44% due to non-core items; core net income at PHP 54.2B, up 48%.

• Total assets as of June 30, 2026: PHP 3.0T; liabilities: PHP 2.2T; equity: PHP 794B; cash: PHP 454B; interest-bearing debt: PHP 1.8T.

• Net income for certain segments rose 3% to P4,381 million, with gross profit up 5%.

Outlook and guidance

• Cautiously optimistic for H2 2026, expecting improved demand in BER months but no full recovery to prior year levels.

• Ongoing investments in infrastructure, energy transition, and capacity expansion across segments.

• No price increases planned for beer and spirits to preserve market share; excise tax hikes not expected to impact near-term.

• Group CapEx for 2026 expected above PHP 200B, with power segment accounting for about half.

• Management expects continued stable performance, with ongoing capital projects and ERP system upgrades to support future growth.