SM Investments Corporation, one of the leading companies in the Philippines, has reported strong first-half results due to solid consumer sentiment and a positive economic environment. Despite not benefiting from last year’s revenge spending trend, the company experienced robust consumer confidence, reflecting the country’s overall economic growth, low unemployment rate, and improving inflation environment.
Retail accounted for 17% of SM Investments’ total net earnings, while property contributed 26%, and banking accounted for the largest share at 47%. Portfolio investments also made a significant contribution of 10% to the company’s consolidated net income.
One of the main drivers of revenue growth was vibrant shopping activity supported by improved employment. Department store revenues grew by 27%, specialty retail revenues increased by 18%, and food retail revenues saw a 10% growth, with Alfamart, the fastest-growing food business, posting an impressive 26% revenue growth in the first half.
According to SM Investments President and CEO, Frederic C. DyBuncio, consumer spending was particularly strong in discretionary categories such as fashion, dining out, and entertainment. This reflects increased spending power on lifestyle and experiences, driven by stronger consumer confidence.
During the first six months of the year, SM Retail and its affiliates added 174 stores, bringing the total retail network to 3,677 stores. SM Prime’s Philippine mall business, which accounts for 53% of consolidated revenues, also experienced significant growth, with revenues increasing by 53% to PHP31.5 billion.
In the banking sector, BDO Unibank, Inc. reported earnings of PHP35.2 billion in the first half, driven by broad-based growth across its core businesses. BDO’s net interest income rose to PHP89.5 billion, supported by the expansion of gross customer loans and deposit liabilities.
China Banking Corporation also sustained profitability, with net profits increasing by 7% to PHP10.8 billion. The bank experienced a 16% growth in net interest income and a solid loans growth, while maintaining stable asset quality.
Additionally, SM Investments received several awards for its commitment to sustainability, good governance, and risk management throughout the year.
Overall, SM Investments Corporation’s strong first-half results reflect the positive economic environment and solid consumer sentiment in the Philippines. With a diverse portfolio of businesses and a solid foundation for the rest of the year, the company is expected to continue its growth trajectory.
