Consumer confidence drives up SMIC earnings to P20B

Improved consumption lifted the first-quarter net income of SM Investments Corp. (SMIC) by 9 percent to P20.1 billion, with the company banking on domestic demand to combat global uncertainties.

The Sy family-led conglomerate said in a regulatory filing on Wednesday that its revenues during the period had climbed by 6 percent to P152 billion.

“Consumer confidence remains good and our businesses are well-positioned to serve in all categories,” SMIC president and CEO Frederic DyBuncio said in a disclosure.

He noted slowing inflation contributed to positive consumer sentiment amid trade tensions abroad.

Confidence amid growth

“We continue to monitor uncertainties in the global macroeconomic environment, but remain positive about the Philippines,” the CEO said. “SM remains focused on serving and enabling our local customers and stakeholders.”

Banking accounted for 51 percent of the group’s total earnings, followed by property at 29 percent, retail at 14 percent and portfolio investments at 6 percent.

SM Retail’s net income expanded by 18 percent to P3.6 billion, driven by spending across all categories.

Food retail revenues increased by 8 percent to P3.6 billion, while the nonfood business chipped in P23.5 billion, up by 6 percent.

Specialty retail, meanwhile, grew by 7 percent to P21.8 billion due to buoyant spending in the health and beauty and fashion categories.

The net income of BDO Unibank Inc., the country’s largest lender, rose by 7 percent to P19.7 billion as lending business grew.

Meanwhile, China Banking Corp. recorded a 10-percent jump in earnings to P6.5 billion, also due to higher loan demand, which offset increased interest expenses.

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Real estate giant SM Prime Holdings Inc. netted P11.7 billion, up by 11 percent on higher gains from its malls, which accounted for 69 percent of total earnings.

SM Prime’s revenues reached P32.8 billion, representing a 7-percent uptick.

This year, SM Prime plans to spend P100 billion to grow its empire of malls, residences and offices.

The developer is also open to partnership opportunities that could boost the growth of its up-and-coming premium primary residential segment.

A unit in this category would start at P15 million, while the upper price range would be determined by market conditions.