Conglomerate SM Investments Corp. (SMIC) said Wednesday it expects its portfolio investments to contribute more than 10 percent to overall earnings over the medium term.
SMIC consultant for investor relations and sustainability Timothy Daniels said in a recent forum the company was betting on potential big contribution from its logistics and geothermal ventures. Prior to the pandemic, SMIC built a portfolio of investments to complement its core malls, banking and retail businesses.
SMIC also has investments in bakery chain Goldilocks and office development under Neo Group, aside from geothermal and logistics business.
Daniels said the group’s portfolio business delivered double-digit contribution collectively and the goal was to continue building on its growth momentum.
“We think we can get this to the mid-teens in percentage contribution over the medium term,” Daniels said.
Daniels said the conglomerate’s investment in Philippine Geothermal Production Company (PGPC) and in logistics with 2GO and Airspeed, were performing well.
2GO Group Inc. posted a strong turnaround with net income reaching P312 million in 2022 on the back of P19.3 billion in revenues.
Revenues rose 25 percent as the company benefitted from the economic reopening and lifting of movement restrictions.
The conglomerate said the increasing geothermal energy production through PGPC fits with its sustainability agenda.
It said that with PGPC, it would be able to provide steam to power plants that would go to the communities that need them.
“We are picking the businesses that add to the ecosystem of SM Investments. It’s about creating value and growth,” Daniels said.
