Daily TribuneSM Retail had a net profit of P4.5 billion or a 49 percent quarter-on-quarter growth. He also noted that what was particularly interesting was the marked improvement in retail sales, reflective of consumption recovery
With consumers maintaining their spending stream in the first half, SM Investments Corporation (SMIC) is seen to benefit from a stronger second half, a traditionally better season for the retail business.
In a report, Gilbert Lopez, head of research for Macquarie Capital Securities (Philippines), said SM Investments reported a net profit of P40.2 billion in the first half which reflected a 10 percent year-on-year growth and a strong improvement in the second quarter.
This was ahead of the brokerage firm’s forecast but in line with available full-year consensus, bearing in mind SM key businesses that typically have a seasonally stronger second half, Lopez said.
“What was good” was the sequential improvement in earnings across all of SM Investments’ major businesses in retail, banking and property.
SM Retail had a net profit of P4.5 billion or a 49 percent quarter-on-quarter growth. He also noted that what was particularly interesting was the marked improvement in retail sales, reflective of consumption recovery.
The standout was the Health and Beauty segment of SM Retail which grew 16 percent year-on-year for both the second quarter and the first half.
In another research report dated 8 August, Philippine Equity Partners research analyst Russ Toribio echoed the sentiment, saying gains from the first half will continue “as a stronger second half lies ahead.”
Private spending recovers
Toribio said, “There was a notable recovery in consumer spending in discretionary items such as fashion and home in the second quarter.”
Sales in the fashion segment posted a 10.5 percent year-on-year growth in the same period largely due to back-to-school shopping in preparation for school openings at the start of the third quarter. Sales in the home segment saw a 4.6 percent year-on-year growth in the second quarter likely related to much warmer weather during the period.
The Philippine Statistics Authority reported that the Philippines’ headline inflation or overall inflation eased to 3.3 percent in August 2024 from 4.4 percent in July 2024. This brings the national average inflation from January to August 2024 to 3.6 percent.
