Steady retail sales in the first nine months of the year helped lift SM Investments’ consolidated net income to US$1.09 billion, marking a 6 per cent increase on the same period last year.

President and CEO Frederic DyBuncio said the company remained steady despite severe weather disruptions in the Philippines. “The third quarter performance remained within our expectations,” he continued.

“Despite the challenges brought about by adverse weather and flooding, we continued to see resilient financial performance across our businesses.”

Banking accounted for the largest share of SM Investments’ net income at 50 per cent, followed by property (28 per cent), retail (15 per cent), and portfolio investments (7 per cent).

SM Retail reported $206.78 million in net income, slightly lower than last year’s $216.95 million, while revenues grew 5 per cent to $5.39 billion.

Consolidated revenues rose 4 per cent to $8.17 billion.

DyBuncio noted that shifts in consumer spending patterns affected quarterly comparisons.

“The earlier school opening in June this year pushed some spending from the third to the second quarter,” he said.

“Despite this shift, specialty retail spending grew in the health and beauty, fashion and kids categories, while essential spending continued to support growth for food retail.”

Category-wise, department stores recorded 3 per cent revenue growth in fashion and kids, while food retail generated a 7 per cent increase, supported by store expansions.

Meanwhile, specialty retail grew 4 per cent, driven by higher demand in kids and home categories.

“While external factors may temper overall economic growth, we maintain an optimistic outlook as we move into the fourth quarter,” DyBuncio concluded.

SM Investments operates businesses in retail, banking, and property across the Philippines.