SM Investments Corporation (SMIC), the ultimate parent company of the Sy family, reported a 7 percent increase in consolidated net income to P21.5 billion in the first quarter of 2026, while raising dividend payouts by 31 percent as the group sustained strong cash generation across its core businesses.

In a Wednesday disclosure to the local bourse, the company said consolidated revenues rose 5 percent to P159.4 billion from P152 billion a year earlier, reflecting steady performance across its diversified portfolio spanning retail, banking, and property.

Good results

“The first quarter continued to deliver good results for us, especially in retail. We are aware of external challenges and will endeavor to maintain our performance by being disciplined on costs and focused on meeting consumer needs even when their spending is constrained,” said Frederic C. DyBuncio, president and chief executive officer of SMIC.

The firm reported banking remained the group’s largest earnings contributor at 49 percent, followed by property at 28 percent, retail at 15 percent, and portfolio investments at 8 percent, underscoring the resilience of SM’s diversified income base.

Retail operations posted net income of P4.1 billion, up 13 percent year-on-year, driven by strong performance in non-food segments such as department stores, supported by seasonal demand including graduation-related spending.

Portfolio investments also contributed to growth, with Atlas Consolidated Mining and Development Corporation benefiting from higher copper prices, while 2GO Group Inc. recorded gains in logistics and travel and Goldilocks Bakeshop saw increased demand during the early graduation season.

Dividend payout increased

On the back of sustained earnings, SMIC increased its dividend payout to P17 per share from P13 previously, bringing total dividends to P20.7 billion from P16 billion in 2025.

“We intend to provide greater returns to shareholders. Our businesses provide us with strong, diverse and reliable cash flows that enable us to do so while also growing our businesses and maintaining a strong balance sheet,” DyBuncio said.

The dividend hike marks the group’s fifth consecutive annual increase and translates to a yield of 2.4 percent based on end-2025 share prices.

Over the past five years, SM’s parent-level dividends have grown at a compounded annual rate of over 32 percent.

Total assets stood at P1.8 trillion, supported by a conservative capital structure of 30 percent net debt to 70 percent equity, providing flexibility for continued investments and capital returns.

“Our approach remains consistent: reinvest in high-quality businesses and consistently return capital to shareholders,” DyBuncio added.