Holding firm of PH’s richest man nets P28.4B in 2014

MANILA, Philippines – Listed SM Investments Corporation (SMIC) of Henry Sy – the Philippines’ richest according to the Forbes 2015 billionaires’ list – reported a net income of P28.4 billion ($643.18 million) in 2014.

Due to the strong performance of its core units – banking, real estate, and retail sectors – SMIC’s net income climbed to 3.6% last year from 2013’s P27.4 billion ($620.51 million).  

“The group’s strong underlying earnings growth of 14.4% in 2014 was the result of solid performance and ongoing expansion in all our 3 core businesses,” SM president Harley T. Sy said.

Recurring net income grew 14.4%, minus extraordinary items, SMIC said in a disclosure to the stock exchange.

SMIC said its earnings was mainly driven by BDO Unibank Incorporated, which posted a core income growth of 18%. Together with China Banking Corporation, banks accounted for 41% of the group’s total consolidated net income in 2014.

Property contributed 38%, while retail accounted for 21% of the net income in 2014.

SMIC’s consolidated revenues went up 9% to P275.7 billion ($6.24 billion) in 2014, from P253.3 billion ($5.74 billion) in 2013 on strong rental revenues in SM’s property business.

Continuous growth

Sy added that SMIC raised additional capital and entered into several strong partnerships, accelerating its investments for growth, and ensuring expansion in line with its continuing optimism about the economic prospects of the Philippines.

In May 2014, SM Investments P15 billionraised  ($339.71 million) from a public offer of peso-denominated retail bonds with maturities of 7 and 10 years.

In June 2014, the conglomerate also issued a $350 million 10-year senior, unsecured bond at a fixed rate of 4.875% per annum.

BDO Unibank also previously reported a net income of P22.8 billion ($516.36 million), attributable to equity holders of the parent firm, versus the P22.6 billion ($511.96 million) net income in 2014.

China Banking Corporation posted a full year consolidated net income of P5.11 billion ($115.77 million) in 2014 due to sustained growth in core business operations.

Prime Holdings Incorporated, the conglomerate’s property unit, also booked consolidated net income of P18.4 billion ($416.94 million) in 2014, up 13% as revenues grew 11% to P66.2 billion ($1.5 billion).

SM Retail Incorporated, meanwhile, also sustained its growth with net income increasing by 3.3% to P5.9 billion ($133.66 million), and total sales rose by 9% to P197.1 billion ($4.46 billion).

By end-2014, SM Retail had a total of 269 stores – 50 SM Stores, 40 SM Supermarkets, 42 SM Hypermarkets, 113 Savemore stores, and 24 WalterMart stores.

In February this year, SMIC announced that it is allotting P80 billion ($1.81 billion) worth of capital expenditures (capex) for its mall, property, and retail expansion. – Rappler.com

 US$1 = P44.13