SMIC profit climbs to P21.5B on gains across core units

SM Investments Corp. (SMIC) reported a 7% increase in its first-quarter (Q1) consolidated net income to P21.5 billion from P20.1 billion a year earlier, which it attributed to growth across its core business segments.

In a statement on Wednesday, the Sy-led conglomerate said consolidated revenues rose by 5% to P159.4 billion from P152 billion in the same period last year.

Banking remained the largest earnings contributor, accounting for 49% of total net income, followed by property at 28%, retail at 15%, and portfolio investments at 8%.

SMIC said its retail segment posted strong results, with SM Retail reporting a 13% increase in net income to P4.1 billion, supported by higher demand in non-food categories such as department stores during the graduation season.

Food and specialty retail segments also contributed steady results, the company said.

Outside its core businesses, SMIC said portfolio investments posted gains, with Atlas Consolidated Mining & Development Corp. benefiting from higher copper prices, while 2GO Group, Inc. reported growth in logistics and travel services.

Goldilocks Bakeshop also saw increased demand during the early part of the graduation season, according to SMIC.

The company said total assets stood at P1.8 trillion as of the end of the quarter. Its capital structure consisted of 30% net debt and 70% equity.

SMIC also said it is managing its position amid geopolitical pressures by focusing on financial discipline, diversification, and maintaining access to capital.

“The first quarter continued to deliver good results for us, especially in retail. We are aware of external challenges and will endeavor to maintain our performance by being disciplined on costs and focused on meeting consumer needs even when their spending is constrained,” SMIC President and Chief Executive Officer Frederic C. DyBuncio said.

“Volatility is now a feature of the operating environment. This means staying liquid, facing investments carefully, and keeping enough flexibility to act when opportunities arise,” SMIC Chairman Amando M. Tetangco, Jr. said during the company’s annual stockholders’ meeting.

“In practical terms, it allows us to invest when conditions are weak, not just when they are favorable,” he added.

Mr. Tetangco said SMIC’s diversification across retail, property, banking, and other investments helps cushion the impact of shocks affecting individual segments.

“Resilience is built ahead of time, not in the middle of early disruption,” he said.

Shares in SMIC were unchanged at P620 apiece on Wednesday. — Alexandria Grace C. Magno