SM Investments Corp. (SMIC) on Wednesday reported netting P77 billion last year, 25 percent higher compared to 2022's P61.7 billion, driven by improved essential and discretionary spending.

Consolidated revenues rose 11 percent to P616.3 billion from the P553 billion recorded a year earlier, the Sy family's holding company said in a statement.

"SM's performance as a group last year reflected our ability to stay close to our customers and address their needs regardless of uncertain economic conditions," said Frederic DyBuncio, SMIC president and chief executive officer.

"A key success driver was the healthy spending patterns of Filipino consumers in both essential and discretionary purchases, particularly in fashion, dining and entertainment," he added.

The banking segment accounted for the largest share of net income at 47 percent. This was followed by property (25 percent), retail (19 percent) and portfolio investments (9 percent).

BDO Unibank Inc.'s net income improved by 38.5 percent to P73.4 billion from P57.1 billion while China Banking Corp. earned a "record" P22 billion, up 15 percent from 2022's P19.1 billion.

Both units delivered growth due to strong growth across core businesses.

In the retail business, SM Retail Inc. saw its net income expand 11 percent year on year to P19.9 billion as revenues grew 10 percent to P415 billion following "consistent" improvements across key segments.

The company's food group — SM Markets, Waltermart and Alfamart — delivered 7.0-percent growth and accounted for nearly half of total retail revenue expansion.

The food segment recorded a 21-percent increase in net income, while the SM Store and specialty retail posted 16-percent and 11-percent revenue growth, respectively.

"This sustained growth is reflective of the spending power of Filipinos," DyBuncio said. "Through our diverse range of brands, we cater to the many needs and wants of our consuming public."

SMIC said it opened 419 new stores in 2023, 89 percent of which were in provincial locations. This brought the group's total retail store count to 3,853.

For the property segment, SM Prime Holdings Inc. booked a 33-percent growth in net income to P40 billion from P30.1 billion, driven by a 21-percent rise in revenues, to P128.1 billion from P105.8 billion.

SMIC, meanwhile, said income contributions from its portfolio investments rose 6.0 percent last year, fueled by higher passenger volume in 2GO's shipping business as well as growth in Goldilocks Bakeshop and Belle Corp.'s leisure businesses.

"Our portfolio companies continue to present solid potential as we invest in emerging sectors that positively impact the economy,'' DyBuncio said.

As of end-2023, the conglomerate's total assets stood at P1.6 trillion, maintaining a "healthy balance sheet with a conservative gearing ratio of 33 percent net debt to 67 percent total equity."

SM Investments shares closed down P8, or 0.87 percent, to P913 each on Wednesday amid a 0.23-percent rise for the benchmark Philippine Stock Exchange index.