Sy-led conglomerate SM Investments Corp., or SMIC, benefited from the resurgence of Filipino spending power post-pandemic as evident in its 2023 net income, which surged 25 percent to P77 billion in 2023, from P61.7 billion in the previous year.

Likewise, on Wednesday, SMIC reported that its consolidated revenues rose by 11 percent to P616.3 billion from P553 billion last 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,” SMIC president and chief executive Officer Frederic C. DyBuncio said.

Success driver

“A key success driver was the healthy spending patterns of Filipino consumers in both essential and discretionary purchases, particularly in fashion, dining and entertainment,” he added.

Based on its net earnings performance report, SMIC’s banking segment led the way in income contribution, accounting for 47 percent of the total. Property followed with 25 percent, retail came in at 19 percent, and portfolio investments made up the remaining 9 percent.

SM Retail Inc., which encompasses grocery, department store, and specialty retail segments, achieved consistent growth across all sectors. The company reported revenues of P415 billion for this segment, representing a 10 percent increase. Moreover, net income experienced an 11 percent growth, reaching P19.9 billion.  

SM’s Food Group revenues, on the other hand, rose seven percent, accounting for nearly half of the company’s total retail revenue increase. The food segment’s net income increased by 21 percent as a result of its operational efficiencies.

Revenue expansion

With a 16 percent increase, SM Stores led revenue expansion, driven by fashion, health and beauty, toys, pets and other discretionary goods. Specialty retail sales increased by 11 percent.

Throughout the year, SM’s retail portfolio grew to a total of 3,853 outlets by the end of 2023. SM’s strategy of tapping into growth opportunities in emerging cities in the region is reflected in the fact that 89 percent of the 419 new stores opened during the year were in rural areas.

For its part, SM Prime Holdings’ P40-billion consolidated net income in 2023 represented a 33 percent rise from the previous year’s P30.1. Consolidated revenues stood at P128.1 billion, higher by 21 percent over 2022’s P105.8 billion.  

Meanwhile, SM’s mall business, which accounts for 56 percent of consolidated property revenues, grew 30 percent in revenues to P71.9 billion in 2023, from P55.4 billion in 2022. Mall rental income increased by 24 percent to P61.3 billion.  

SM’s residential business, led by SM Development Corp., reported an increase in revenues by eight percent to P43.1 billion. Reservation sales stood at P102 billion in 2023, translating to more than 21,000 residential units sold in 2023.

Other key businesses comprised of offices, hotels and convention centers reported an increase of 26 percent or P13.1 billion in revenue in 2023.