SM Investments books P55.9B in Jan-Sept, up 30%

Sy-led conglomerate SM Investments Corporation saw double-digit growth in its bottom line in the first nine months of 2023 on the back of strong consumer demand during the period.

In a disclosure to the Philippine Stock Exchange on Wednesday, SM Investments reported a net income of P55.9 billion during the January–September period, up 30% from P42.9 billion booked in the same period last year.

Meanwhile, the company’s consolidated revenues across its businesses reached P440.4 billion, up 15% from P382 billion year-on-year.

“Our ongoing healthy growth reflects buoyant consumer activity in malls and sustained spending in discretionary retail categories,” said SM Investments president and chief executive officer Frederic DyBuncio.

“We look forward to the fourth quarter while continuing to monitor the impact of food prices and interest rates on consumer wallets,” he added.

SM Investments said its retail business accounted for 18% of its total net earnings during the period.

Banking contributed the biggest share at 47%, followed by property at 26%.

Portfolio investments accounted for the remaining 9% of SM Investments’ bottom line.

SM Investments said its retail business reported a net income of P13.7 billion, up 19% from P11.5 billion year-on-year, as retail revenues grew by 12% to P290.6 billion from P258.4 billion a year earlier.

The conglomerate’s banking giant, BDO Unibank Inc., saw its net income grow to P53.9 billion from P40.0 billion in the same period last year, “backed by broad-based growth across its core businesses.”

Also under SM Investments’ banking portfolio, China Banking Corporation booked a consolidated net income of P16.2 billion in the first nine months, up 10% year-on-year “on the back of robust growth from core businesses and lower loan loss provisions.”

Net interest income grew by 16% to P39.2 billion as the 44% surge in top-line revenues cushioned the nearly triple increase in interest expense.

SM Prime, SM Investment’s property developer, reported a net income of P30.1 billion during the period, up 37% from P22.0 billion earned in the same period last year.

SM Prime’s consolidated revenues grew by 26% to P92.6 billion from P73.7 billion last year.

SM Investments said SM Prime’s mall business, which accounts for 57% of consolidated revenues, posted P52.5 billion in the nine-month period, up 37% from P38.2 billion.

SM Prime’s residential business, led by SM Development Corp., reported a bottom line of P28.7 billion, up 10% from P26.1 billion in the same period last year.

SM Investments portfolio investment contributed 9% to its total earnings with Philippine Geothermal Production Company and NEO, its office portfolio, “contributing significantly to net income."

The company ended September 30, 2023, with total assets of P1.5 trillion, up 4% from a year earlier. —VBL, GMA Integrated News