Conglomerate SM Investments Corp. said Wednesday its consolidated net income grew 9 percent in the first quarter of 2025 to P20.1 billion from P18.4 billion in the same period last year as consumer spending improved on the back of falling inflation rate.
Consolidated revenues rose 6 percent to P152 billion from P143.7 billion a year earlier.
“We are encouraged by the positive start to 2025. Consumer confidence remains good and our businesses are well-positioned to serve in all categories. Positive sentiment is supported by falling inflation, which was at 1.4 percent in April,” said SMIC president and chief executive Frederic DyBuncio.
The group’s largest income contributor was banking, which accounted for 51 percent of total earnings. Property followed with 29 percent, retail with 14 percent and portfolio investments with 6 percent.
SM Retail’s net income grew 18 percent to P3.6 billion from P3.1 billion in the same period last year, while revenues were up 7 percent to P100.3 billion from P93.5 billion.
Revenues for food retail increased 8 percent to P61.5 billion, driven by improved margins in SM Markets. In non-food retail, revenues of the department store business rose 6 percent to P23.5 billion.
Revenues for specialty retail grew 7 percent to P21.8 billion, led by spending across all categories. Discretionary spending was strongest in the health and beauty and fashion categories.
The portfolio investments’ performance was driven by office landlord NEO, which contributed 38 percent of total portfolio income, Philippine Geothermal Production Company which delivered 36 percent and Belle Corp. which contributed 11 percent.
SMIC’s property arm SM Prime Holdings Inc. said in a separate disclosure it is moving into upscale residential projects and master-planned urban estates with a new brand expected to launch in Metro Manila.
The premium residential segment will offer units starting at P15 million. To strengthen its entry into the premium primary residential segment, SM Prime expressed openness to partnerships while emphasizing its internal capability to deliver projects independently.
“For certain developments that we have already planned and have strong confidence in, we will pursue them on our own,” said Jose Juan Jugo, executive vice president for the premium residential segment.