SM Investments Corp. said it expects its portfolio investments to exceed its current contribution of 10 percent to overall earnings within five years.
Timothy Daniels, SM Investments consultant for investor relations and sustainability, said the group’s portfolio business is now delivering double-digit contribution collectively and the goal is to continue building on its growth momentum.
“We think we can get this to the mid-teens in percentage contribution over the medium term,” Daniels said in his talk at the recently concluded Philippine Stock Exchange Investor Day.
“Particularly, our optimism lies in the potential contributions of logistics and geothermal ventures to drive faster growth,” Daniels said.
He added the investments the company made in Philippine Geothermal Production Co. (PGPC) and in logistics with 2GO and Airspeed, have performed well.
Daniels noted that last year, 2GO posted a milestone profit of P312 million on the back of P19.3 billion in revenues.
“2GO’s revenues grew 25 percent as the company benefitted from the country’s economic reopening and complete lifting of movement restrictions,” he said.
Daniels said the increasing geothermal energy production through PGPC fits with SM’s objectives when it comes to its sustainability agenda.
“With PGPC, the SM Group will be able to provide steam to power plants that will, in turn, go to the communities that need them,” it said.
“We are picking the businesses that add to the ecosystem of SM Investments. It’s about creating value and growth,” he added.
