Post-pandemic ‘revenge spending’ by Philippine consumers has been cited by SM Investments as driving a strong set of first-half results.

For the six months to June, consolidated revenue rose 18 per cent to PHP286.3 billion (US$5.08 billion) while consolidated net income reached PHP36.5 billion (US$648 million) up 32 per cent.

The retail segment accounted for 17 per cent of total net earnings with net income up 21 per cent to $149 million on revenue up 15 per cent to $3.35 billion.

The company says revenue growth “mirrored” consumers’ vibrant shopping activity supported by improving employment.

Department stores registered a 27 per cent increase in revenue while specialty retail sales rose 18 per cent. Food retail grew 10 per cent with Alfamart becoming the fastest-growing food business, contributing 26 per cent in the first half.

SM Investments president and CEO, Frederic C DyBuncio, said the performance was “driven by fundamental demand” without the “added benefit of post-pandemic revenge spending” that [also] contributed to last year’s results.

“Consumer spending was notably strong in discretionary categories such as fashion, dining out, and entertainment, reflecting increased spending power on lifestyle and experiences, underpinned by stronger consumer confidence.

“This provides us with a solid basis for the balance of the year, in which we typically see our strongest quarters.”