Strong consumer demand lifts SMIC H1 profit–exec

By VG Cabuag @villygc

Consolidated revenues rose 18 percent to p 2 86.3 billion in the January to June period from p 242.6 billion in the same period last year.

“SM delivered strong results in the first half, driven by solid consumer sentiment on the back of a positive economic environment. our performance was driven by fundamental demand, without the added benefit of postpandemic revenge spending that contributed to last year’s results,” SMIC president and Ceo

Frederic C. d yBuncio said.

“We experienced robust consumer confidence, consistent with the philippines’s overall economic growth, record low unemployment and improving inflation environment. This provides us with a solid basis for the balance of the year, in which we typically see our strongest quarters.” of total net earnings, retail accounted for 17 percent, property contributed 26 percent while banking accounted for the largest share at 47 percent. portfolio investments contributed 10 percent.

SM Retail’s net income grew 21 percent to p8.4 billion from the previous p7 billion. Revenues were up 15 percent to p188.9 billion from last year’s p164.3 billion.

The company said the revenue growth mirrored vibrant shopping activity supported by improving employment. As a result, revenues for the department store grew 27 percent while specialty retail revenues rose 18 percent.

Food retail revenues went up by 10 percent. Alfamart was the fastest-growing food business, as its revenues jumped by 26 percent in the first half.

As of end-June, Alfamart had a total of 1,528 stores.

“Consumer spending was notably strong in discretionary categories such as fashion, dining out, and entertainment, reflecting increased spending power on lifestyle and experiences, underpinned by stronger consumer confidence.”

In the first half, SM Retail and its affiliates added 174 stores, bringing the total retail network to 3,677 stores. SM pr ime holdings Inc.’s consolidated net income grew 38 percent to p19.4 billion in the first half from p14.1 billion in the same period last year.

Bdo Unibank Inc. posted earnings of p35.19 billion in the first half, up by 47 percent from the previous year’s p23.94 billion, driven by broad-based growth across its core businesses.

Improving demand for tourism and transport, energy and consumer spending ensured a good performance by portfolio investments, the company said.

The philippine Geothermal production Co., SMIC said, continues to lead in its advocacy for green energy with new projects in Northern luzon slated to increase steam production. These are in Kalinga, da klan, and Cagayan and also in southern lu zon at Mount l abo and Malinao.