MANILA, Philippines — Earnings of the Sy family’s investment holding company SM Investments Corp. (SMIC) grew by 10 percent in the first half on the back of double-digit profit increases from its property and banking units.
SMIC reported a net income of P40.2 billion in the six-month period ending June, up from P36.5 billion in the same period in 2023.
Revenues also improved by five percent to P301.4 billion from last year’s P286.7 billion.
For the second quarter alone, SMIC booked a 13-percent jump in profit to P21.8 billion as revenues climbed by six percent to P157.7 billion.
“SM’s double digit growth in the first half results reflects a positive environment for our businesses. Improved discretionary spending in the second quarter lifted retail sales, while our banks, property and portfolio investments continued to deliver,” SMIC president and CEO Frederic DyBuncio said.
DyBuncio said the company remains cautiously optimistic for the balance of the year.
Banking accounted for the largest share of the group’s earnings in the first half at 50 percent, followed by property at 27 percent, retail at 14 percent and portfolio investments at nine percent.
BDO Unibank Inc. recorded net earnings of P39.4 billion, 12 percent higher on the back of stronger momentum from its core intermediation and fee-based service businesses.
China Banking Corp. also reported higher net income in the first half, posting a record P11.4 billion as a result of stronger core lending and deposit-taking activities.
For its property business, SM Prime Holdings Inc. saw its profit increase by 13 percent to P22.1 billion as revenues grew by eight percent to P64.7 billion.
The net income of SM Retail, meanwhile, slipped by 9.5 percent to P7.6 billion from last year’s P8.4 billion due to a high base effect from the impact of the lifting of mobility restrictions on consumption in 2023.
Revenues, however, grew by four percent to P196.9 billion with the second quarter reflecting higher growth, indicative of spending on discretionary items such as appliances, beauty and fashion.
SM Retail expanded its network by 355 stores in the first half, bringing its total to 4,208 stores.
In terms of its portfolio investments, Atlas Consolidated Mining and Development Corp. recorded an increase in net income to P2.07 billion with revenues climbing by 23 percent to P12.5 billion as a result of higher copper metal prices.
The Philippine Geothermal Production Co. Inc., for its part, recently embarked on the exploration and development of new geothermal energy sources in various parts of Luzon that will help bolster power security for that region and advance the country’s renewable energy objectives.
2GO Group Inc., on its end, launched new passenger vessels, 2GO M/V Masigla and 2GO M/V Masikap in the second quarter, which will sail from Manila to destinations in Visayas and Mindanao.
In a related development, SMIC said its board approved a property-for-share swap with subsidiary Intercontinental Development Corp. (ICDC).
The property-for-share swap involves landholdings of ICDC in Susana Heights, Muntinlupa City in exchange for new shares of SMIC.
Two senior vice presidents of the company were likewise promoted. They are Elizabeth Anne Uychaco and Franklin Gomez who have both been promoted to executive vice president.
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