The Sy family’s conglomerate, SM Investments Corp. (SMIC), grew profits by 27 percent to P12 billion in the first quarter of 2022 as core units saw business activity recover while its retail segment reached 94 percent of prepandemic sales.
In a statement on Wednesday, the listed holding company said revenues during the quarter also rose 16 percent to P112.1 billion.
SM Investments’ core businesses are BDO Unibank Inc., China Banking Corp., SM Prime Holdings and a sprawling retail empire.
Banks contributed 49 percent of its income, followed by property (29 percent), retail (16 percent) and portfolio investments such as Atlas Consolidated Mining and Development Corp. (6 percent).
“Our financial performance in the first quarter showed continued recovery momentum with accelerating revenue and net income growth,” SM Investments president and CEO Frederic DyBuncio said in the statement.
“As a group, we are delivering prepandemic performance, with strong recovery continuing in our businesses that were hardest hit by the pandemic. While there are still headwinds from geopolitical risks, we continue to see consumer confidence gaining momentum,” he added.
Among portfolio investments, Atlas grew net income by 191 percent to P1.22 billion as earnings were “boosted by higher production and higher metal prices.”
Retail segment recovery
The company also underscored the recovery of its retail segment. SM Investments said this indicated “pent-up demand especially for nonfood items since the fourth quarter of last year with the easing of alert levels.”
SM Retail’s first quarter revenues rose 6 percent to P74.6 billion while net income closed the period at P2.6 billion, up 61 percent.
Last April 27, SM Investments stockholders approved a merger that would give the conglomerate 100 percent of Allfirst Equity Holdings Inc, the owner of Tiwi and Mak-Ban steam fields in Albay. This would give the company direct exposure in the country’s energy sector.