SM Investments Corp., the holding company of the SM Group, reported a consolidated net income of P36.5 billion in the first six months of 2023, up 32 percent from P27.7 billion in the same period last year.
Consolidated revenues rose 18 percent in the first half to P286.3 billion from P242.6 billion in the same period last year.
“SM delivered strong results in the first half, driven by solid consumer sentiment on the back of a positive economic environment. Our performance was driven by fundamental demand, without the added benefit of post-pandemic ‘revenge spending’ that contributed to last year’s results,” SM Investments president and chief executive Frederic DyBuncio said.
“We experienced robust consumer confidence, consistent with the Philippines’ overall economic growth, record low unemployment and improving inflation environment. This provides us with a solid basis for the balance of the year, in which we typically see our strongest quarters,” he said.
The conglomerate said ff total net earnings, retail accounted for 17 percent; property, 26 percent; banking, 47 percent; and portfolio investments, 10 percent.
SM Retail’s net income grew 21 percent to P8.4 billion from P7.0 billion as revenues rose 15 percent to P188.9 billion from P164.3 billion.
Revenue growth mirrored vibrant shopping activity supported by improving employment. Revenues for the department store grew 27 percent, while specialty retail revenues increased 18 percent.
Food retail revenues grew 10 percent, with Alfamart as the fastest-growing food business, posting 26 percent revenue growth in the first half. As of June 2023, Alfamart had a total of 1,528 stores nationwide.
“Consumer spending was notably strong in discretionary categories such as fashion, dining out, and entertainment, reflecting increased spending power on lifestyle and experiences, underpinned by stronger consumer confidence,” DyBuncio said.
SM Retail and its affiliates added 174 stores, bringing the total retail network to 3,677 stores as of end-June 2023.
SM Prime Holdings, Inc.’s consolidated net income grew 38 percent to P19.4 billion in the first half from P14.1 billion in the same period last year. This was supported by a 29-percent growth in consolidated revenues to P59.9 billion from P46.3 billion.
SM Prime’s Philippine mall business, which accounts for 53 percent of consolidated revenues, grew 53 percent to P31.5 billion from P20.6 billion.
Malls’ rental income grew 42 percent to P26.3 billion due to improvement in tenant sales and foot traffic. SM Prime’s local cinema, ticket sales and other revenues increased 156 percent to P5.2 billion.
Revenues of SM Prime’s primary residential business, led by SM Development Corp. in the first half amounted to P17.6 billion. SMDC’s reservation sales grew 15 percent to P68.5 billion from P59.4 billion.
Revenues of SM Prime’s other business segments, which included offices, hotels and convention centers, grew 40 percent to P6.2 billion from P4.5 billion.
BDO Unibank Inc. posted earnings of P35.2 billion in the first half, driven by broad-based growth across core businesses.
Net interest income rose to P89.5 billion as gross customer loans expanded 8 percent year-on-year to P2.7 trillion while deposit liabilities broadened 12 percent to P3.3 trillion.
China Banking Corporation sustained its profitability on higher revenues and lower provisioning. Net profit went up 7 percent to P10.8 billion in the first six months.
Improving demand for tourism and transport, energy and consumer spending ensured a good performance by portfolio investments, which contributed 10 percent of consolidated net income.
Philippine Geothermal Production Company continues to lead in its advocacy for green energy with new projects slated to increase steam production located in Northern Luzon: Kalinga, Daklan, and Cagayan; and Southern Luzon: Mount Labo and Malinao.