SM Investments—the most valuable conglomerate on the Philippine Stock Exchange—posted net income of P21.5 billion, up 7 percent from a year ago, a stock exchange filing on Wednesday showed.
Revenues during the three month period grew 5 percent to P159.4 billion.
Management’s view
“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,” Frederic C. DyBuncio, president and CEO of SM Investments, said the statement.
SM Investments shares closed unchanged at P620, vaulting the corporate giant at P755.7 billion.
Retail’s double-digit growth
SM Retail led the charge, with profit rising 13 percent to P4.1 billion, driven by department stores and graduation-season demand.
“Retail business was the strongest performer here,” Timothy Daniels, head of investor relations and sustainability at SM, said during a media briefing after the company’s stockholders’ meeting on Wednesday.
He said that in times of uncertainty, SM goes back to its core operating principles to stay resilient.
“We focus on the customer’s needs and the breadth of our retailing, our formats, our merchandising, and our ability to meet the customer’s needs at every price point. That becomes the focus when things get more challenging,” he said.
Core engines hold steady
The group’s retail growth offset uneven results across its portfolio, with BDO Unibank posting about 2 percent growth and China Banking Corporation up around 4 percent.
Property arm SM Prime Holdings was largely flat for the quarter, reflecting softer real estate conditions.
The conglomerate also shone the spotlight on a few of its portfolio assets.
Atlas Consolidated Mining & Development Corp. turned around on the back of higher copper prices, while 2GO Group posted growth across its logistics and travel segments.
Demand at Goldilocks Bakeshop also picked up during the early graduation season.
The company ended the quarter with total assets at P1.8 trillion, with a conservative capital structure of 30 percent net debt to 70 percent equity.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
