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SM's business bright spot: Strong retail activity pushes SM net income 27% higher to PHP26B in H1
"Our financial performance was led by strong consumer spending across all categories and formats of our retail business and the return of crowds in malls. Despite rising inflation, we are encouraged to see shoppers' robust spending in the first half. This is a bright spot in the Philippines and in the region amid global headwinds," said Frederic C. DyBuncio, SM Investments Corporation President and Chief Executive Officer.
Consumers are back to safe shopping in SM stores which drove up retail growth. Further supporting this growth are SM Retail's efficient operations and strategic expansion.
SM Retail reported revenues of PHP163.7 billion, higher by 18% from PHP138.2 billion in the same period last year.
This revenue growth is driven by higher foot traffic in retail stores and malls as well as renewed vigor in shopping for fashion-related items in the department stores. The larger food retail formats also benefitted from higher foot traffic in malls.
Retail net income was higher by 91% to PHP7.0 billion from
PHP3.6 billion in the previous period, benefitting from cost reductions and efficiencies across all formats.
"This consumer-driven momentum brings more optimism moving forward as we keep innovating on our retail offerings to ensure an excellent shopping experience for the Filipino consumer," Mr. DyBuncio said.
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SM Investments Corporation is a leading Philippine company that is invested in market-leading businesses in retail, banking and property. It also invests in companies that capture high growth opportunities in the emerging Philippine economy.
SM Retail is the country's largest and most diversified with its food, non-food, and specialty retail stores. SM Prime Holdings, Inc., is the largest integrated property developer in the Philippines with interests in malls, residences, offices, hotels, and convention centers as well as tourism-related property developments. In banking, BDO Unibank, Inc. is the country's largest bank and China Banking Corporation, the 6th largest bank.
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