The Sy family’s flagship SM Investments Corporation (SMIC) reported a 25 percent growth in consolidated net income to P77 billion in 2023 from the P61.7 billion earned in 2022 as the company continues to address needs of customers amid uncertain economic conditions.

In a disclosure to the Philippine Stock Exchange (PSE), the holding firm of the SM Group reported that its consolidated revenues increased 11 percent to P616.3 billion last from P553 billion in the previous year.

“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 CEO Frederic C. DyBuncio.

He noted that “a key success driver was the healthy spending patterns of Filipino consumers in both essential and discretionary purchases, particularly in fashion, dining and entertainment.”

In terms of net income contribution, its banking unit provided the largest share at 47 percent, while property accounted for 25 percent, retail contributed 19 percent, and portfolio investments nine delivered percent.

SM Retail Inc., which consists of grocery, department store and specialty retail, reported revenues of P415 billion, up 10 percent on consistent growth across key segments. Net income increased 11 percent to P19.9 billion.

As essential spending continued to be steady, revenues from SM’s Food Group such as SM Markets, WalterMart and Alfamart -- grew seven percent, which contributed almost half of total retail revenue growth. With continuing efficiencies in operations, net income for the food segment increased 21 percent.

The SM Store revenues increased 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 added.

SM continued to expand its retail footprint to a total of 3,853 retail outlets at the end of 2023. Out of the total 419 new stores opened during the year, 89 percent were located in provincial areas, reflective of SM’s strategy to tap into growth opportunities in emerging cities in the regions.

SM Prime Holdings posted a P40 billion consolidated net income in 2023, up 33 percent from P30.1 billion the past year.

BDO Unibank, Inc. delivered a record net income of P73.4 billion in 2023 from P57.1 billion in 2022, from growth across its core businesses, as China Banking Corporation achieved net income of P22 billion in 2023, up 15 percent from 2022, bolstered by higher core business revenues.

SM’s share of the net earnings of its portfolio investment companies grew six percent in 2023 driven by buoyant passenger volumes in 2GO’s shipping business, the leisure and entertainment business of Belle Corporation, and growth in Goldilocks Bakeshop.

“Our portfolio companies continue to present solid potential as we invest in emerging sectors that positively impact the economy,” MDyBuncio said.
The total assets of SM grew seven percent to P1.6 trillion. SM maintains a healthy balance sheet with a conservative gearing ratio of 33 percent net debt to 67 percent total equity.