SM Investments Corp. (SMIC), led by the Sy family, maintains an optimistic outlook on the substantial contribution of its portfolio businesses to the group’s bottom line.
SMIC envisions a sustained double-digit contribution from its portfolio investments in the medium term, with these investments anticipated to account for more than 10 percent of overall earnings.
As of the first half of 2023, SMIC’s portfolio investments, primarily focused on geothermal energy and logistics sectors, had already contributed 10 percent to the company’s total net earnings.
Timothy Daniels, SMIC’s consultant for investor relations and sustainability, expressed the company’s aspiration to build upon this growth momentum, with a target of achieving a mid-teens percentage contribution over the medium term.
Daniels emphasized their optimism, particularly driven by the potential of logistics and geothermal ventures to propel faster growth.
He highlighted the favorable performance of investments in Philippine Geothermal Production Company (PGPC) and logistics partners 2GO and Airspeed.
2GO, in particular, demonstrated notable financial performance, reporting profits of P312 million alongside revenues of P19.3 billion in the previous year.
This achievement was attributed to the country’s economic reopening and the complete lifting of movement restrictions.
SMIC’s engagement in geothermal energy aligns with the group’s sustainability agenda. The partnership will enable the SM Group to provide steam to power plants, benefiting communities in need.
“We are picking the businesses that add to the ecosystem of SM Investments. It’s about creating value and growth,” Daniels said.