SM Investments Corp., the holding firm of the Sy family, on Wednesday projected accelerated contribution from its portfolio of investments that range from logistics to power firms.
According to SMIC, the portfolio, which contributed 10 percent to aggregate earnings pre-pandemic, is seen contributing more than 10 percent over the medium term.
Timothy Daniels, investor relations and sustainability consultant at SMIC, said the portfolio delivers double-digit earnings contribution and the goal is to continue building on the growth momentum. “We think we can get this to the mid-teens in percentage contribution over the medium term,” he said in his Investor Day talk at the Philippine Stock Exchange.
According to Daniels, the contributions were to come from logistics and geothermal ventures of the group.
“The investments we made in the Philippine Geothermal Production Co. and in logistics with 2Go and Airspeed have performed well,” he said.
Last year, 2Go turned around and reported profits of P312 million on the back of P19.3 billion in revenue. The 25 percent revenue growth was attributed to the reopening of the economy and the complete lifting of Covid-related restrictions at the time.
Rising geothermal energy production through PGPC fits with SM group’s sustainability agenda.
“We are picking the businesses that add to the ecosystem of SM Investments. It’s about creating value and growth,” Daniels said.
SMIC earlier reported consolidated net income of P36.53 billion in the first six months this year, up 32 percent from last year’s P27.71 billion.
Consolidated revenue rose 18 percent to P286.33 billion in the January to June period, from P242.57 billion last year.
Of total net earnings, retail accounted for 17 percent, property 26 percent, banking 47 percent while portfolio investments contributed 10 percent.
SM Retail net income grew 21 percent to P8.4 billion from P7 billion.
Revenue was up 15 percent to P188.9 billion from last year’s P164.3 billion.
