SY-LED SM Investments Corp. reported a 52.7% increase in net income for 2022 to P61.7 billion from P40.4 billion, which it attributed to the country’s economic recovery and the actions it took during the pandemic.
“We are stronger today having prioritized our people, our tenants, our business partners and our communities during the difficult times,” SM Investments President and Chief Executive Officer Frederic C. DyBuncio said in a disclosure to the stock exchange on Tuesday.
“SM also innovated and improved efficiencies across the board, and today we are focused again on expanding our footprint across the regions to serve more Filipinos,” he added.
The strong profit growth comes as the company’s consolidated revenues rose by 28.1% to P553.8 billion from P432.4 billion in 2021.
According to the company, banking led by contributing 45% to net income, while property, retail, and portfolio investments contributed 23%, 21%, and 11%, respectively.
BDO Unibank, Inc. delivered a 33.4% increase in net income to P57.1 billion from P42.8 billion in the previous year.
Meanwhile, China Banking Corp. posted a 27% increase in net income to P19.1 billion.
Property unit SM Prime Holdings, Inc. reported a 38% higher consolidated net income of P30.1 billion.
Additionally, SM Development Corp. recorded P40.1 billion in revenues, 12.6% lower than the P45.9 billion reported in 2021.
Meanwhile, SM Retail reported revenues of P378.2 billion, 24% higher than the previous year’s P304 billion.
“Retail’s robust performance was lifted by the return to face-to-face schooling and a strong last quarter due to vibrant holiday spending,” the company said.
The net income for retail nearly doubled to P17.9 billion from P9.6 billion.
For the whole of last year, SM Retail and its affiliates added 348 new stores, bringing the total store count to more than 3,500 outlets — 72 for The SM Stores, 1,611 specialty retail stores, 65 SM Supermarkets, 54 SM Hypermarkets, 215 Savemore, 82 WalterMart and 1,412 Alfamart stores.
Among the company’s investments, it gained full ownership of Philippine Geothermal Production Co. and increased its stake in the logistics business Airspeed to 51% from 35%.
“We increased our stakes in a number of companies that are investments in the growing Philippine economy and a testament to our commitment to sustainability,” Mr. DyBuncio said.
Separately, SM Investments disclosed the approval by its board on Tuesday of the tender offer for 2GO Group, Inc. shares for up to 378,817,279 common shares constituting 15.39% of the issued and outstanding common capital stock of the subsidiary.
The move, subject to an independent third-party fairness opinion, prompted 2GO to request a voluntary trading suspension “to allow the investing public equal access to and consideration of this information.”
On the stock market on Tuesday, shares in SM Investments slumped by 4.75% or P42.50 to finish at P852 each. — Adrian H. Halili
