SM Investments Corp. (SMIC) is sticking with its proven strategy amid ongoing global and local economic uncertainties, emphasizing that consistency—not radical change—will guide the conglomerate through turbulence.
The Sy-led group posted a 7% rise in first-quarter net income to P21.5 billion, alongside a 5% increase in consolidated revenues to P159.4 billion, reflecting stable performance across its diversified businesses.
"We're staying the course," said SMIC Executive Vice President for Finance Franklin Gomez in a media briefing. He stressed the company's focus on "what we have tried and tested over the years."
Gomez explained that the company's approach is built on discipline—tight cost control, prudent investments, and a strong balance sheet—rather than reacting abruptly to market shifts.
"There are shocks to the economy, but we are not going to change course just because a flick happened," he said.
Retail operations saw a 13% year-on-year net income increase to P4.1 billion, driven by higher volumes and seasonal demand such as graduation-related spending. Retail margins also improved across formats, including department stores and specialty retail, as management focused on efficiency and disciplined promotions.
Despite the solid start, Gomez tempered expectations for the rest of the year, citing "fluid" global conditions that make forecasting difficult.
"At this stage, there's really no point trying to speculate … what we focus on is preparing for contingencies," he said.
SMIC's diversified earnings base remains a key buffer: banking contributed 49% of net earnings, followed by property at 28%, retail at 15%, and portfolio investments at 8%. Portfolio investments also saw incremental growth, with units like Atlas Consolidated benefiting from elevated copper prices, while 2GO and Goldilocks experienced demand pickups.
SMIC highlighted that its conservative capital structure—30% net debt to 70% equity—enables it to invest through cycles while maintaining financial resilience. At its core, the company relies on steady cash generation from recurring businesses, allowing reinvestment and shareholder returns even during uncertain periods.