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 yr earlier, which it attributed to growth across its core business segments.
In a press release on Wednesday, the Sy-led conglomerate said consolidated revenues rose by 5% to P159.4 billion from P152 billion in the identical period last yr.
Banking remained the biggest 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 corresponding to department shops in the course of the graduation season.
Food and specialty retail segments also contributed regular results, the corporate 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 in the course of the early a part of the graduation season, based on SMIC.
The corporate said total assets stood at P1.8 trillion as of the top of the quarter. Its capital structure consisted of 30% net debt and 70% equity.
SMIC also said it’s managing its position amid geopolitical pressures by specializing in financial discipline, diversification, and maintaining access to capital.
“The primary quarter continued to deliver good results for us, especially in retail. We’re aware of external challenges and can endeavor to keep up 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 implies staying liquid, facing investments rigorously, and keeping enough flexibility to act when opportunities arise,” SMIC Chairman Amando M. Tetangco, Jr. said in the course of the company’s annual stockholders’ meeting.
“In practical terms, it allows us to take a position when conditions are weak, not only once 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 midst of early disruption,” he said.
Shares in SMIC were unchanged at P620 apiece on Wednesday. — Alexandria Grace C. Magno