SM Investments posted a 7 percent increase in consolidated earnings to PHP21.5 billion in the first quarter this year, largely driven by its Retail business which net income grew a strong 13.2 percent to PHP4.1 billion.
Consolidated revenues for the January to March period rose 5 percent to PHP159.4 billion, from PHP152.0 billion a year earlier.
At SM, a diversified earnings base continues to underpin performance, with banking contributing 49 percent of reported net earnings, followed by property at 28 percent, retail at 15 percent, and portfolio investments improving at 8 percent from 6 percent.
Meanwhile, there were steady contributions from specialty and food retail formats. As the Group’s largest consumer-facing business, SM Retail contributes significantly to recurring cash flows at the parent level.
Based on its disclosure, SMRetail revenues in the first quarter hit PHP106 billion or 5.7 percent higher than the PHP100.3 billion in same period last year.
The group counts 4,854 SM stores in the first three months this year from 4,831 stores in 2025. SM Store growth was driven by gross margin improvement.
Growth was led by non-food retail, particularly department stores, supported by seasonal demand including graduation-related spending.
Timothy Daniels, SM Investments’ head of investor relations and sustainability, during a media briefing noted that the first quarter results remained good.
Daniels further said that they remain cautiously optimistic in their outlook for the entire 2026 with external challenges requiring greater customer focus and cost discipline.
Group earnings continue to be diverse allowing the conglomerate to weather external volatility. Banking continued to be its biggest net income contributor at 49 percent, property at 28 percent, and retail 15 percent.
Meantime, portfolio companies increased from 6 percent to 8 percent of Group net income, providing incremental growth and diversification. Atlas Consolidated Mining & Development Corporation benefited from higher copper prices, while 2GO Group recorded growth across its logistics and travel segments.
Goldilocks Bakeshop also saw increased demand during the early graduation season.
At the parent level, SM’s scale, recurring income, and broad exposure to the Philippines’ consumer-driven economy enable it to generate cash across cycles and allocate capital toward long-term value creation.
SM Investments total assets stood at PHP1.8 trillion, with a conservative capital structure of 30 percent net debt to 70 percent equity, supporting continued flexibility in capital allocation.
