SM Investments Corp. (SMIC), the Sy family holding company, said on Wednesday that its income increased 27% to £ 25.5bn in the first half from £ 20.1bn last year, as consumers are again shopping in brick-and-mortar stores.
Consolidated revenues increased 23% to P238.5 billion compared to P193.5 billion the previous year.
“Our financial performance was driven by strong consumer spending across all categories and formats of our retail business and the return of crowds to shopping malls. Despite rising inflation, we are encouraged to see solid buyer spending in the first half. This is a positive point in the Philippines and the region amid global headwinds, ”said Frederic C. DyBuncio, president and CEO of SMIC.
In terms of net earnings, banks accounted for 48 percent, followed by real estate at 26 percent, retail at 20 percent, and other portfolio investments at 6 percent.
The company said consumers have returned to its stores, which has driven the growth of the retail trade.
SM Retail posted revenues of £ 163.7bn, up 18% from £ 138.2bn the previous year, driven by increased foot traffic in retail stores and malls and renewed vigor. when shopping in department stores.
Larger grocery retail formats have also benefited from increased foot traffic in malls, the company said.
Retail net income nearly doubled to P7 billion from previous P3.6 billion, benefiting from cost reductions and efficiencies in all formats.
“This consumer-driven momentum brings more optimism forward as we continue to innovate our retail offerings to ensure an excellent shopping experience for the Filipino consumer,” said DyBuncio.
Between January and June, SM Retail and its affiliates added 147 stores. This brought the total stores to 3,336 which include 69 department stores, 1,543 specialty stores, 62 supermarkets, 52 hypermarkets, 214 with the Savemore brand, 1,320 Alfamart convenience stores and 75 WalterMart stores.
SM Prime Holdings Inc. recorded a 21% increase in consolidated net profit to P14.1 billion from P11.6 billion last year.
Lender BDO Unibank Inc. made a net profit of £ 23.9 billion for the period, up 12% from the previous year thanks to positive results in its core businesses.
SMIC said its portfolio companies across sectors also experienced growth for the period as these also benefited from the reopening of the economy.