SMIC posts P25.5-B income as mall crowd returns | Inquirer Business
STRONG CONSUMER SPENDING

SMIC posts P25.5-B income as mall crowd returns

By: - Business Features Editor / @philbizwatcher
/ 02:08 AM August 04, 2022

Leading conglomerate SM Investments Corp. (SMIC) delivered P25.5 billion in first half net income, 27-percent better than its profit in the same period last year, as core retailing, property and banking businesses all grew at a robust pace.

The business under SM Retail, the only major operating unit that is not separately listed on the local stock exchange, booked a 91-percent growth in profit to P7 billion, “benefiting from cost reductions and efficiencies across all formats,” SMIC disclosed to the Philippine Stock Exchange on Wednesday.

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For the second quarter alone, SMIC chalked up about P13.5 billion in net profit, accelerating from P12 billion in the first quarter. It also jumped 27 percent from the P10.62-billion bottom line in the same quarter last year.

“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,” SMIC president and CEO Frederic DyBuncio said.

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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.

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

SMIC reported that improved consumer confidence had fueled SM Retail’s earnings growth, alongside efficient operations and strategic expansion. Its revenue increased by 18 percent to P163.7 billion.

The larger food retail formats also gained from higher foot traffic.

In the six months ending June, SM Retail and its affiliates added 147 stores, bringing the total to 3,336.

SMIC said its portfolio companies also delivered growth in the first half. Over the years, the conglomerate has been investing in new sectors believed to offer high-growth potential, such as integrated gaming resort (Belle Corp.), mining (Atlas Consolidated Mining & Development Corp.), logistics (2GO Group Inc. and Airspeed), dormitory chain (Philippine Urban Living Solutions), community shopping malls (CityMall Commercial Centers Inc.) and food retailing (Goldilocks).

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TAGS: SM Investments Corp. (SMIC), SM Retail
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