SM Investments Corp. (SMIC) said its retail segment is expected to help sustain the company as it navigates a challenging economic environment.
Company officials said they remain “cautiously but positively optimistic,” noting that most of their business units posted positive results in the first quarter. The group is focusing on core strategies such as meeting customer needs, offering a wide range of products, and keeping prices accessible.
SMIC reported a consolidated net income of P21.5 billion for the first quarter, up 7 percent from P20.1 billion a year ago. Revenues rose 5 percent to P159.4 billion from P152 billion.
President and CEO Frederic DyBuncio said retail delivered strong results, even as the company stays mindful of external pressures. He added that SMIC will continue to control costs and focus on consumers, especially as spending remains tight.
The banking segment contributed the largest share of earnings at 49 percent, followed by property at 28 percent, retail at 15 percent, and portfolio investments at 8 percent.
SM Retail posted a 13 percent increase in net income to P4.1 billion, while revenues grew 5 percent to P106 billion. Growth was driven mainly by non-food retail, including department stores, supported by seasonal demand such as graduation-related spending. Food and specialty retail also posted steady performance.
Other investments also showed growth. Atlas Mining benefited from higher copper prices, while 2GO Group saw gains in logistics and travel. Goldilocks Bakeshop posted a 3 percent increase in income due to higher demand during the graduation season.
SMIC said its diversified businesses and strong consumer base help it generate steady cash flow, allowing it to invest for long-term growth despite economic cycles. Company officials added that SM will continue to rely on proven strategies that have guided it through past challenges.
