SM Investments Q1 net income up 6% on Philippines’ economic growth

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SM Investments Corp. (SMIC) has reported a six percent increase in net income, reaching P18.4 billion ($313 million) in the first quarter, up from P17.3 billion ($301 million) in the same period last year. This growth was supported by the country’s economic progress, which SMIC has been able to capitalize on effectively.

The company’s total revenues for the quarter amounted to P144 billion ($2.5 billion), marking a four percent increase from P138.3 billion ($2.4 billion) in the first quarter of 2023. Frederic DyBuncio, President and CEO of SMIC, attributed this growth to the company’s ability to adapt to evolving consumer spending habits and priorities, as well as the broader economic trends in the Philippines.

To further support its expansion plans, SMIC and SM Prime Holdings Inc. have jointly established a $3-billion multi-issuer European Medium Term Note (EMTN) program. This initiative will allow the companies to access the offshore bond market and secure funding for their growth and expansion strategies.

EMTNs are internationally traded debt securities that provide companies like SMIC with additional financing options.

SMIC’s core businesses, including banking, property, retail, and portfolio investments, continue to perform well. Banking accounted for 52 percent of reported net earnings, followed by property at 29 percent, retail at 12 percent, and portfolio investments at seven percent.

Despite challenges in the retail sector, SM Retail saw improvements in revenues, although net income dropped to P3.1 billion ($54 million) from P3.9 billion ($67 million) in the first quarter of the previous year.

SMIC remains optimistic about its future outlook and expansion plans, with a commitment to spending up to P115 billion ($2 billion) this year to support its various businesses. SM Prime, in particular, is focusing on a P100 billion ($1.7 billion) capital spending program to drive growth and innovation in its projects.

Overall, SMIC’s strategy is to expand its coverage nationwide to create new markets and improve access to modern retailing, financial services, and integrated property developments. This approach aligns with the company’s goal of contributing to economic growth and enhancing the quality of life for millions of people across the Philippines.

(Source: SunStar Philippines | Manila Times | Inquirer)

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