SM Investments books P77 B net income in 2023

Sy-led SM Investments Corporation (SMIC) booked a double-digit growth in its bottom line in 2023 on the back of robust spending demand during the period.

In a disclosure to the Philippine Stock Exchange on Wednesday, SMIC reported a net income of P77 billion, up 25% from P61.7 billion in 2022.

The conglomerate booked P616.3 billion last year, up 11% from P553 billion a year prior.

“A key success driver was the healthy spending patterns of Filipino consumers in both essential and discretionary purchases, particularly in fashion, dining and entertainment,” said SMIC president and CEO Frederic DyBuncio.  

SMIC’s banking business contributed the largest share to the net income at 47%, while property accounted for 25%, retail shared 19%, while portfolio investments contributed 9%.

SM Retail saw its revenues reach P415 billion, up 10% year-on-year, while net income grew by 11% to P19.9 billion.

SM Retail is SMIC’s business consisting of groceries, department stores, and specialty retail.

The conglomerate’s retail arm recorded a retail footprint of 3,853 retail outlets as of the end of 2023. 

Out of the total 419 new stores opened during the year, 89% were located in provincial areas, reflective of SM’s strategy to tap into growth opportunities in emerging cities in the regions.

SMIC’s property unit SM Prime Holdings, meanwhile, posted P40 billion in net income last year, up 33% from P30.1 billion in 2022 on the back of P128.1 billion which grew 21% from P105.8 billion.

Sy family’s banking group led by BDO Unibank booked a net income of P73.4 billion, higher than the P57.1 billion seen in 2022.

China Banking Corporation saw a net income of P22 billion in 2023, up 15% year-on-year.

Moreover, SMIC’s portfolio investments saw a 6% growth last year amid increased passenger volumes in 2GO’s shipping business, the leisure and entertainment business of Belle Corp., and growth in Goldilocks Bakeshop.

“Our portfolio companies continue to present solid potential as we invest in emerging sectors that positively impact the economy,” said DyBuncio.

SMIC ended 2023 with total assets of P1.6 trillion, up 7% year-on-year. —VAL, GMA Integrated News