SM Investments reported P77-B profit haul in 2023

MANILA, Philippines  —The Sy family’s SM Investments Corp., the country’s biggest conglomerate by market value, saw 2023 net income surge 25 percent to P77 billion, with nearly half of the earnings coming from record profits at its banking units.

During the past year, total revenues reached P616.3 million, a gain of 11 percent, buoyed by robust growth in both the property sector and its consumer-focused retail and malls portfolio.

“A key success driver was the healthy spending patterns of Filipino consumers in both essential and discretionary purchases, particularly in fashion, dining and entertainment,” SM Investments CEO Frederic C. DyBuncio said in a statement on Wednesday.

The conglomerate also underscored the 6-percent growth of its emerging investment portfolio, which accounted for nearly 10 percent of earnings last year.

These businesses include renewable energy firm Philippine Geothermal Production Co., 2GO Group Inc., Goldilocks Bakeshop and the leisure and casino arm of Belle Corp.

Emerging sectors

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

Another major earnings driver was the company’s retail segment, which has a nationwide presence of supermarkets and grocery stores.

SM Retail Inc. saw net income climb 11 percent to P19.9 billion while revenues increased 10 percent to P415 billion in 2023.

READ: SM Group makes major push into grocery delivery services

Nearly half of its revenues came from SM Markets, WalterMart and Alfamart while net income at the division increased 21 percent.

The SM Store sales also increased 16 percent while specialty retail revenues grew 11 percent amid robust spending on “fashion, health and beauty, pets, toys and other discretionary items”.

“This sustained growth is reflective of the spending power of Filipinos. Through our diverse range of brands, we cater to the many needs and wants of our consuming public,” DyBuncio said.

Retail footprint

The group’s retail footprint increased to 3,853 retail outlets at the end of 2023, with more store openings focused on provincial areas, the conglomerate said.

SM Prime Holdings, the second-biggest contributor (25 percent) to the parent firm, saw profits in the past year surge 33 percent to P40 billion.

The company’s mall businesses, which accounted for more than half of total property revenues, saw a 30 percent increase to P71.9 billion.

SM Development Corp. led the residential business to an 8 percent increase in revenues to P43.1 billion, with reservation sales hit P102 billion, equivalent to over 21,000 units sold.

BDO, China Banking Corp

SM Prime’s other segments including offices, hotels, and convention centers enjoyed a 26 percent revenue jump to P13.1 billion.

READ: BDO shatters PH income records

A few days ago, BDO Unibank announced its largest profit yet at P73.4 billion in 2023 while China Banking Corp. recorded P22 billion in net income, which was also a record figure.

BDO’s net interest income surged to P186.4 billion, supported by a 9 percent expansion in gross customer loans to P2.85 trillion.

Chinabank’s net interest income expanded by 17 percent to P53.5 billion as loans grew by 10 percent to P791 billion.