The Sy family’s flagship conglomerate, SM Investments Corp. (SMIC), remains upbeat about its prospects for the second half of 2026 after posting higher earnings across all its business segments in the first semester, despite a challenging economic environment.

“We remain positive about the outlook for the second half of the year, while staying mindful of macroeconomic uncertainties,” said SMIC President and CEO Frederic C. DyBuncio.

He added, “Our diversified portfolio, prudent balance sheet, and disciplined approach to capital allocation position us well to continue investing in the Philippines and creating long-term value for our customers, communities, and shareholders.”

SMIC reported an eight percent growth in consolidated net income to ₱45.9 billion in the first half of 2026 from ₱42.6 billion in the same period last year, backed by sustained consumer demand and the strength of its diversified business model.

In a disclosure to the Philippine Stock Exchange, the company said consolidated revenues for the January-to-June period increased 6% to ₱339.2 billion from ₱319.2 billion year-on-year.

“Consumer spending in our retail stores and malls remained healthy despite recent economic shocks. The Filipino consumer was tested during the first half of the year, but our businesses proved to be resilient,” DyBuncio said.

He noted, “Steady demand across our consumer-led businesses, plus solid contributions from our portfolio companies, continue to reflect the strength of our diversified business model. This gives us the confidence to keep investing for long-term growth.”

In terms of net income contribution, banking accounted for 47 percent, followed by property at 27 percent, retail at 15 percent, and portfolio investments at 11 percent.

SM Retail reported a five percent increase in net income to ₱8.9 billion, while operating income grew 12 percent to ₱14 billion, demonstrating the company’s ability to efficiently manage expenses in a higher-inflation environment. Growth was broad-based, driven by resilient consumer demand for everyday essentials and the continued expansion of the group’s store network.

Food retail posted steady sales growth across its supermarket and minimart chain formats, while specialty retail registered higher sales led by the Home, Other Fashion, and Kids categories. Growth in the Home category was driven by sustained demand for alternative power sources. In the Other Fashion category, growth was led by Kultura and Crocs, while the Kids category was bolstered by spending on toys, pet products, and stationery.

Consumer demand was equally evident in the group's mall business through SM Prime Holdings, where revenues grew eight percent to ₱41.8 billion due to the combined impact of higher occupancy, stronger tenant sales, and improved operational efficiency.

Banking subsidiaries BDO Unibank and China Banking Corp. posted mid-teens loan growth and remained the group's largest earnings contributors, reflecting the continued strength of its core banking franchise.

Portfolio investments delivered a stronger performance, driven by a turnaround at Atlas Consolidated Mining and Development Corp. which was buoyed by higher copper prices. 2GO Group, Inc. recorded revenue growth across all categories, supported by higher passenger volumes in travel and increased logistics demand from online purchases. Meanwhile, Philippine Geothermal Production Company, Inc. saw revenues increase amid favorable energy price adjustments. (James A. Loyola)