Consumer spending lifts SMIC earnings

MANILA, Philippines — SM Investments Corp. (SMIC) booked a record first-half net income of P45.9 billion, up 8 percent, fueled by resilient consumer spending and gains across its diversified businesses.

The Sy family-led conglomerate said on Wednesday its consolidated net income rose from P42.6 billion in the same period last year.

READ: SMIC stays the course despite global economic shocks

Article continues after this advertisement

Consolidated revenues for the January-to-June period likewise increased 6 percent to P339.2 billion from P319.2 billion.

“Consumer spending in our retail stores and malls remained healthy despite recent economic shocks,” SM Investments president and CEO Frederic DyBuncio said.

“The Filipino consumer was tested during the first half of the year but our businesses proved to be resilient,” DyBuncio said.

Banking remained SMIC’s largest earnings contributor, accounting for 47 percent of net income.

Property contributed 27 percent, followed by retail at 15 percent and portfolio investments at 11 percent.

Article continues after this advertisement

SM Retail’s net income climbed 5 percent to P8.9 billion, while operating income jumped 12 percent to P14 billion as the company managed expenses amid higher inflation.

The group’s mall business likewise benefited from healthy consumer spending.

Article continues after this advertisement

Mall revenues rose 8 percent to P41.8 billion, driven by higher occupancy, stronger tenant sales and improved operational efficiency.

Its banks, meanwhile, posted mid-teens loan growth and remained the conglomerate’s biggest earnings contributor.

SMIC also saw stronger contributions from its portfolio investments.

Atlas Consolidated Mining and Development Corp. staged a turnaround on higher copper prices.

READ: Atlas Mining turns profitable on higher gold prices

2GO Group Inc. recorded revenue growth across all categories on increased passenger and logistics volumes.

Philippine Geothermal Production Company Inc. also posted higher revenues following adjustments in energy prices.

SMIC ended June with total assets of P1.82 trillion. Its capital structure consisted of 31 percent net debt and 69 percent equity.

DyBuncio said the conglomerate remained positive about its prospects for the rest of the year, although it continued to watch macroeconomic uncertainties.

“Our diversified portfolio, prudent balance sheet and disciplined approach to capital allocation position us well to continue investing in the Philippines and creating long-term value for our customers, communities and shareholders,” he said.