Conglomerate SM Investments Corp. said Tuesday net income advanced by 53 percent in 2022 to P61.7 billion from P40.4 billion in 2021 on strong performance of core banking, property and retail businesses.
SMIC said in a stock exchange filing consolidated revenues went up 28 percent to P553.8 from P432.4 billion in the same period.
“All of our business units delivered strong results, reflecting the Philippines’ economic recovery last year and the actions we took during the pandemic. SM also innovated and improved efficiencies across the board, and today we are focused again on expanding our footprint across the regions to serve more Filipinos,” SMIC president and chief executive Frederic DyBuncio said.
Banking remained as the biggest contributor to the group’s profit, accounting for 45 percent to net income. Property contributed for 23 percent, retail accounted for 21 percent and portfolio investments delivered the remaining 11 percent.
SM Retail group booked a net income of P17.9 billion in 2022, up 86 percent year-on-year as revenues climbed 24 percent to P378.2 billion.
SMIC said the robust performance of the retail group came following the return to face-to-face schooling and increased spending in the fourth quarter of 2022.
The retail group expanded its store network with the opening of four department stores and 231 supermarket and convenience stores. As of end-2022, the group was operating 3,512 retail stores across the country.
SMIC’s property unit SM Prime Holdings Inc. reported a 38-percent year-on-year increase in net income to P30.1 billion, driven by the recovery of mall and residential businesses.
Banking arm BDO Unibank Inc. booked a net income P57.1 billion, up from P42.8 billion in 2021, led by robust growth across its core businesses.
SMIC said that aside from growing its core business, it expanded its portfolio investment with the acquisition of Philippine Geothermal Production Company Inc. which operates the Tiwi and Mak-Ban steam fields.
The conglomerate also hiked its stake in its other logistics business, Airspeed to 51 percent from 35 percent to further support the movement of goods in a reopened economy.
“We increased our stakes in a number of companies that are investments in the growing Philippine economy and a testament to our commitment to sustainability. These companies are all profitable and generating significant contributions to our group earnings,” DyBuncio said.
SMIC said its board of directors approved the conduct of a tender offer to acquire 378.82 million shares, equivalent to 15.39-percent stake in its listed transportation and logistics firm 2GO Group Inc.
SMIC said the terms of tender offer price would be subject to third-party fairness opinion as required under the Philippine Stock Exchange’s tender offer rules.
The conglomerate engaged BPI Capital Corp. as the independent third-party valuation provider and to render the fairness opinion. It also appointed BDO Securities Corp. as tender offer agent.
“The tender offer price, timing, terms and conditions of the tender offer shall be determined and finalized upon receipt and acceptance by the SMIC board of directors of the fairness opinion report of BPI Capital,” SMIC said.