SM Investments nets P36.5B in H1

Sy-led SM Investments Corp. (SMIC) on Wednesday reported a 32% increase in its first-half earnings, on the back of sustained consumer sentiment and demand during the period.

The company reported a P36.5-billion consolidated net income for the first six months, up from P27.7 billion in 2022. Consolidated revenues jumped 18% to P286.3 billion from P242.6 billion.

“Our performance was driven by fundamental demand, without the added benefit of post-pandemic ‘revenge spending’ that contributed to last year’s results,” president and chief executive officer Frederic DyBuncio said.

“This provides us with a solid basis for the balance of the year, in which we typically see our strongest quarters,” he added.

SM Retail’s net income climbed 21% to P8.4 billion, as revenues increased 15% to P188.9 billion — department stores up 27%, specialty retail up 18%, food up 18%, and Alfamart up 26%.

The company added 174 stores to its portfolio in the first six months of the year, bringing its total retail network to 3,677 stores including 1,528 Alfamart branches.

“Consumer spending was notably strong in discretionary categories such as fashion, dining out, and entertainment, reflecting increased spending power on lifestyle and experiences, underpinned by stronger consumer confidence,” DyBuncio said.

SM Prime Holdings saw a 38% increase in its consolidated net income P19.4 billion, with revenues up 29% to P59.9 billion. Its mall business reported a 53% growth in revenues to P31.5 billion.

For its banking units, BDO Unibank Inc. reported P35.2-billion earnings during the period, while China Banking Corp. posted P10.8-billion net profits.

SMIC’s business portfolio includes The SM Store, SM Supermarket, SM Hypermarket, SaveMore, Walter Mart Supermarket Inc., Alfamart.

It also has equity investments in the Neo Group, Philippine Urban Living Solutions, CityMall Commercial Centers Inc., Belle Corp., 2GO Group Inc., Airspeed, Goldilocks, and Atlas Consolidated Mining & Development Corp. —KBK, GMA Integrated News