SM Investments Corporation (SM Investments), the flagship of the Sy family, reported a 32 percent growth in its consolidated net income to P36.5 billion in the first half of 2023 from P27.7 billion in the same period last year.

In a disclosure to the Philippine Stock Exchange, the firm said consolidated revenues rose 18 percent to P286.3 billion in the January to June period from P242.6 billion in the same period last year.

“SM delivered strong results in the first half, driven by solid consumer sentiment on the back of a positive economic environment,” SM Investments President and CEO Frederic C. DyBuncio said.

He added that, “Our performance was driven by fundamental demand, without the added benefit of post-pandemic ‘revenge spending’ that contributed to last year’s results.”

“We experienced robust consumer confidence, consistent with the Philippines’ overall economic growth, record low unemployment and improving inflation environment. This provides us with a solid basis for the balance of the year, in which we typically see our strongest quarters,” DyBuncio noted.

Of total net earnings, SM’s retail business accounted for 17 percent, property contributed 26 percent, banking accounted for the largest share at 47 percent, and portfolio investments contributed 10 percent.

SM Retail’s net income grew 21 percent to P8.4 billion from P7.0 billion as revenues were up 15 percent to P188.9 billion from P164.3 billion.

Revenue growth mirrored vibrant shopping activity supported by improving employment. As a result, revenues for the department store grew 27 percent while specialty retail revenues increased 18 percent.

Food retail revenues grew 10 percent with Alfamart as the fastest-growing food business, posting 26 percent revenue growth in the first half. As of June 2023, Alfamart had a total of 1,528 stores.

“Consumer spending was notably strong in discretionary categories such as fashion, dining out, and entertainment, reflecting increased spending power on lifestyle and experiences, underpinned by stronger consumer confidence,” DyBuncio said.

In the first half of 2023, SM Retail and its affiliates added 174 stores, bringing the total retail network to 3,677 stores.

SM Prime Holdings, Inc.’s consolidated net income grew 38 percent to P19.4 billion in the first half from P14.1 billion in the same period last year due to a 29 percent growth in consolidated revenues to P59.9 billion.

BDO Unibank, Inc. (BDO) posted earnings of P35.2 billion in the first half driven by broad-based growth across its core businesses while China Banking Corporation’s profits were up 7 percent to P10.8 billion in the first six months.

Improving demand for tourism and transport, energy and consumer spending ensured a good performance by portfolio investments, which contributed 10 percent of consolidated net income.

Philippine Geothermal Production Company (PGPC) continues to lead in its advocacy for green energy with new projects slated to increase steam production located in Northern Luzon: Kalinga, Daklan, and Cagayan; and Southern Luzon: Mount Labo and Malinao.