Philippine retail and property giant SM Investments has seen significant growth in revenue, driven by increased foot traffic and customer spending – despite rising inflation.
SM Investments has reported a net profit increase of 27 per cent, at US$ 1.246 billion from January to June, versus $982 million in the same period last year.
The company’s retail division net income increased by 91 per cent to $342 million from $176 million during the previous period.
Frederic C DyBuncio, CEO at SM Investments, said strong retail activity and the return of crowds in malls helped boost the company’s financial performance.
Consolidated revenues rose 23 per cent to $11.656 billion in the first half, from $9.457 billion in the same period last year.
“Despite rising inflation, we are encouraged to see shoppers’ robust spending in the first half,” remarked DyBuncio “This is a bright spot in the Philippines and the region amid global headwinds.”
SM Retail reported revenues of $8 billion, up by 18 per cent from $6.75 billion during the same period last year.
Higher foot traffic and the returning vigour of customers in its retail stores and malls helped drive revenue growth, with renewed interest in shopping for fashion-related items and dining out in mall restaurants.
The corporation says it is further supporting this growth with its cost reductions, operations efficiencies, and strategic expansion.
“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,” DyBuncio added.