Conglomerate SM Investments Corp. (SMIC) said Wednesday its net income surged 25 percent to P77 billion in 2023 from P61.7 billion in 2022 on double-digit growth of core retail, banking and property businesses.
Consolidated revenues increased 11 percent to P616.3 billion from P553.0 billion in the same period, the company said in a disclosure to the stock exchange.
“SM’s performance as a group last year reflected our ability to stay close to our customers and address their needs regardless of uncertain economic conditions,” said SMIC president and chief executive Frederic DyBuncio.
“A key success driver was the healthy spending patterns of Filipino consumers in both essential and discretionary purchases, particularly in fashion, dining and entertainment,” he said.
The group said that in terms of net income contribution, banking provided the largest share at 47 percent, while property accounted for 25 percent. Retail contributed 19 percent and portfolio investments delivered 9 percent.
SM Retail, which consists of grocery, department store and specialty retail, registered an 11-percent increase in net income to P19.9 billion as revenues rose 10 percent to P415-billion.
Sales from SM Retail’s food business grew 7 percent, which contributed almost half of total retail revenue growth.
Sales from SM Retail’s non-food business went up 16 percent and specialty retail revenues grew 11 percent, driven by spending on fashion, health and beauty, pets, toys and other discretionary items.
“This sustained growth is reflective of the spending power of Filipinos. Through our diverse range of brands, we cater to the many needs and wants of our consuming public,” DyBuncio said.
SM Retail’s store footprint reached 3,853 outlets at the end of 2023, after it opened 419 stores last year.
Property arm SM Prime Holdings Inc. posted consolidated net income of P40 billion in 2023, up 33 percent year-on-year on strong performance of mall and residential business.
The mall business, which accounted for 56 percent of consolidated property revenues, grew 30 percent to P71.9 billion in 2023.
Residential business, led by SM Development Corp, also reported an increase of 8-percent in revenues to P43.1 billion.
Other key businesses, consisting of offices, hotels and convention centers, reported an increase of 26 percent in revenues to P13.1 billion.
Banking units BDO Unibank Inc. and China Banking Corp. also delivered strong growth in 2023. BDO posted a net income of P73.4 billion in 2023, up 29 percent from a year ago, while China Bank achieved net income of P22.0 billion in 2023, up 15 percent from the previous year.
SMIC’s share of the net earnings of its portfolio investment companies, including 2Go Group Inc., Goldilocks and Belle Corp., grew 6 percent in 2023.
“Our portfolio companies continue to present solid potential as we invest in emerging sectors that positively impact the economy,’’ said DyBuncio.
The conglomerate’s total assets rose 7 percent to P1.6 trillion in 2023.