Village Connect
SM Investments Corporation (SM) maintained its growth momentum in the first six months of 2026, supported by resilient consumer spending and steady contributions from its banking, property, retail, and portfolio businesses.
The parent company of the SM Group reported consolidated net income of PHP45.9 billion, an 8% increase from PHP42.6 billion recorded during the same period in 2025. Consolidated revenues likewise climbed 6% to PHP339.2 billion, compared with PHP319.2 billion a year earlier.
The results reflected continued consumer activity despite economic pressures during the period. SM Investments President and Chief Executive Officer Frederic C. DyBuncio said spending in the group’s retail stores and malls remained healthy even as Filipino consumers faced economic challenges.
“The Filipino consumer was tested during the first half of the year but our businesses proved to be resilient,” DyBuncio said, noting that steady demand and contributions from portfolio companies reinforced the benefits of SM’s diversified business model.
Banking remained the biggest contributor to SM’s earnings, accounting for 47% of net income, followed by property at 27%, retail at 15%, and portfolio investments at 11%.
SM Retail posted a 5% increase in net income to PHP8.9 billion, while operating income advanced 12% to PHP14 billion. The performance was supported by demand for everyday necessities, expansion of the store network, and efforts to manage expenses amid higher inflation.
Food retail recorded steady sales across supermarket and minimart formats. Specialty retail also delivered higher sales, particularly in the Home, Other Fashion, and Kids segments. Demand for alternative power sources supported the Home category, while Kultura and Crocs helped drive Other Fashion. Spending on toys, pets, and stationery contributed to the Kids segment.
The group’s mall operations also benefited from sustained consumer activity, with revenues increasing 8% to PHP41.8 billion. Higher occupancy, improved tenant sales, and operational efficiencies supported the increase.
Banking continued to provide a strong foundation for the group, recording mid-teens loan growth during the period.
SM’s portfolio investments also showed improved results. Atlas Consolidated Mining and Development Corporation benefited from higher copper prices, while 2GO Group, Inc. recorded revenue growth across its businesses as passenger traffic and logistics volumes increased. Philippine Geothermal Production Company, Inc. likewise posted higher revenues following adjustments in energy prices.
SM Investments ended the first half with total assets of PHP1.82 trillion and maintained a capital structure consisting of 31% net debt and 69% equity.
Looking ahead, the company remains positive about the second half of 2026 while keeping watch on broader economic uncertainties.
DyBuncio said SM’s diversified portfolio, prudent balance sheet, and disciplined capital allocation provide a strong foundation for continued investment in the Philippines and long-term value creation for customers, communities, and shareholders.
Loading…