SM Investments nets P40.2B in H1

The Sy family’s SM Investments Corp. (SMIC) on Wednesday reported double-digit growth in its consolidated net income for the first half of the year, driven mainly by improved discretionary spending during the period.

SMIC said its second-quarter consolidated net income rose 13% to P21.8 billion, as consolidated revenues climbed 6% to P157.7 billion. This brought first-half net income up by 10% to P40.2 billion and revenues by 5% to P301.4 billion.

“SM’s double digit growth in the first half reflects a positive environment for our business,” SMIC president and chief executive officer Frederic DyBuncio said in an emailed statement.

“Improved discretionary spending in the second quarter lifted retail sales, while our banks, property, and portfolio investments continued to deliver. We remain cautiously optimistic for the balance of the year,” he added.

The retail business posted a decline in its net income to P7.6 billion from P8.4 billion, which the firm attributed to the high base effect from the impact of lifting mobility restrictions in 2023. Revenues grew 4% to P196.9 billion.

The property segment SM Prime Holdings Inc. reported a 13% growth in its net income to P22.1 billion, as revenues rose by 8% to P64.7 billion. The mall business accounted for P37.5 billion of revenues, mall rental by 9% to P32.1 billion, and the primary residential business with P18.9 billion.

The banking unit BDO Unibank Inc. saw a 12% in its net earnings to P39.4 billion, as net interest income expanded by 11% to P99.6 billion.

SMIC’s portfolio investments include Atlas Consolidated Mining and Development Corp., which reported P2.07-billion in net income as revenues grew 23% to P12.5 billion on the back of higher copper metal prices.

The company in April said it earmarked some P120 billion for its capital spending this year, with bulk or P100 billion going to its property business which is set to open four malls this year. — RSJ, GMA Integrated News