SM Investments Corporation experienced a boost in its income
Last year, SM Investments Corp. (SMIC) reported a net income of P77 billion, marking a significant 25 percent increase compared to 2022’s earnings of P61.7 billion. This impressive growth was fueled by a combination of improved essential and discretionary spending. The conglomerate disclosed that consolidated revenues also experienced a notable 11 percent uptick, reaching P616.3 billion from the previous year’s P553 billion, according to a statement released by the Sy family’s holding company.
Frederic DyBuncio, President and CEO of SMIC, attributed the group’s strong performance to its ability to remain attuned to customer needs amidst uncertain economic conditions. He highlighted the healthy spending habits of Filipino consumers, particularly in essential and discretionary purchases such as fashion, dining, and entertainment, as key drivers of success.
Breaking down the income distribution, the banking segment emerged as the top contributor, accounting for 47 percent of net income, followed by property (25 percent), retail (19 percent), and portfolio investments (9 percent). BDO Unibank Inc. reported a notable 38.5 percent increase in net income to P73.4 billion, while China Banking Corp. achieved a “record” P22 billion, marking a 15 percent increase from 2022’s earnings.
In the retail sector, SM Retail Inc. witnessed a commendable 11 percent expansion in net income to P19.9 billion, with revenues growing by 10 percent to P415 billion, driven by consistent improvements across key segments. The food group, comprising SM Markets, Waltermart, and Alfamart, played a significant role, contributing to nearly half of the total retail revenue expansion with a 7.0-percent growth.
SMIC emphasized sustained growth across various retail segments, including a 21-percent increase in the food segment’s net income, along with 16-percent and 11-percent revenue growth in The SM Store and specialty retail, respectively. DyBuncio underscored that this sustained growth reflects the robust spending power of Filipinos, facilitated by the conglomerate’s diverse range of brands catering to various consumer needs.
In terms of expansion, SMIC opened 419 new stores in 2023, predominantly in provincial locations, bringing the total retail store count to 3,853. Meanwhile, SM Prime Holdings Inc., under the property segment, reported a notable 33-percent growth in net income to P40 billion, driven by a 21-percent increase in revenues to P128.1 billion.
Despite this positive financial performance, SM Investments shares closed slightly down on Wednesday, reflecting broader market movements.
Business News: SM Investments Corporation experienced a boost in its income
