Steady performance across its portfolio boosted SM Investments Corp.’s earnings by seven percent to P21.5 billion in the first quarter, from P20.1 billion in the same period last year.
Seeing recurring volatility as the new normal, the Sy family’s SM Investments Corp. is maintaining a disciplined approach in hopes of sustaining its positive first quarter performance throughout the rest of the year.
Steady performance across its portfolio boosted SM Investments’ earnings by seven percent to P21.5 billion in the first quarter, from P20.1 billion in the same period last year.
The group generated revenues of P159.4 billion during the three months, five percent higher than P152 billion in the same period in 2025.
SM Investments chairman Amando Tetangco Jr. said the group recognizes that today’s environment is less about temporary shocks and more about recurring volatility.
“Volatility is now a feature of the operating environment. This means staying liquid, facing investments carefully and keeping enough flexibility to act when opportunities arise,” Tetangco said during the company’s annual stockholders’ meeting on Wednesday, April 29.
“In practical terms, it allows us to invest when conditions are weak, not just when they are favorable,” he said.
Tetangco said SM Investments’ approach rests on three simple anchors that have carried the group through past disruptions.
“First, we maintain a disciplined balance sheet, keeping debt at manageable levels and liquidity sufficient so we have room to act when conditions tighten,” Tetangco said.
“Second, we’re diversified across retail, property, banking, and other investments, which helps cushion shocks that may affect one part of the business more than others. Third, we secure access to capital, both domestic and international, well ahead of need rather than in the middle of stress,” he added.
In the first quarter, banking contributed 49 percent of SM Investments’ reported net earnings, followed by property at 28 percent, retail at 15 percent, and portfolio investments at eight percent.
The company said retail performance reflected resilient consumer activity, with SM Retail reporting net income of P4.1 billion, up by 13 percent year-on-year.
Growth was led by non-food retail, particularly department stores, supported by seasonal demand, including graduation-related spending. There were also 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.
SM Investments said its portfolio investments also continued to provide incremental growth and diversification.
Atlas Consolidated Mining and Development Corp. benefited from higher copper prices, while 2GO Group recorded growth across its logistics and travel segments.
Goldilocks Bakeshop, for its part, saw increased demand during the early graduation season.
At the parent level, SM Investments said its 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.
“The first quarter continued to deliver good results for us, especially in retail. We are aware of external challenges and will endeavor to maintain our performance by being disciplined on costs and focused on meeting consumer needs even when their spending is constrained,” SM Investments president and CEO Frederic DyBuncio said.
Reflecting the group’s ability to generate cash while continuing to invest for long-term growth, SM Investments announced on Wednesday a 31 percent increase in dividends to P17 per share from P13 in 2025.
Total dividends increased to P20.7 billion from P16 billion last year.
This marks the fifth consecutive year SM has increased dividends and comes on top of a 44 percent increase in dividends per share last year.
Over the past five years, parent-level dividends jumped from P5 billion in 2021 to P16 billion in 2025, translating to a compounded annual growth rate of over 32 percent.
Since listing in 2005, SM has returned P148.9 billion in dividends to shareholders as of end-2025.
“We intend to provide greater returns to shareholders. Our businesses provide us with strong, diverse, and reliable cash flows that enable us to do so while also growing our businesses and maintaining a strong balance sheet,” DyBuncio said.