SM Investments’ first semester profit up 27% to P25.5B

The country’s largest conglomerate, SM Investments Corp. (SMIC), delivered P25.5 billion in first semester net income, 27 percent better than its profit in the same period last year, as core retailing, property and banking businesses all grew their earnings at a double-digit pace.

The business under SM Retail, the only major operating unit that is not separately listed on the local stock exchange, saw a 91-percent expansion in its six-month net income to P7 billion, “benefitting from cost reductions and efficiencies across all formats,” SMIC disclosed to the Philippine Stock Exchange on Wednesday.

Group-wide consolidated revenues rose 23 percent to P238.5 billion in the first half.

“Our financial performance was led by strong consumer spending across all categories and formats of our retail business and the return of crowds in malls. Despite rising inflation, we are encouraged to see shoppers’ robust spending in the first half. This is a bright spot in the Philippines and in the region amid global headwinds,” said Frederic DyBuncio, SMIC president and CEO.

In terms of net earnings, banks (BDO Unibank and China Bank) accounted for 48 percent, followed by property (SM Prime Holdings) at 26 percent, retail (SM Retail) at 20 percent and portfolio investments at 6 percent.