China malls, new branches hike SM Prime Jan-Sept income by 15%

Rappler.com
Robust sales of China- and Philippine-based malls of Sy-led SM Prime Holdings Inc. boosted January-to-September net profits by 15% to P7.4 billion from P6.41 billion a year ago

MANILA, Philippines – Robust sales of China- and Philippine-based malls of Sy-led SM Prime Holdings Inc. boosted January-to-September net profits by 15% to P7.4 billion from P6.41 billion a year ago.

In a disclosure on Monday, October 9, the country’s largest shopping mall developer and operator explained that “the growth is largely due to rentals from new Philippine malls opened in 2010 and 2011, same store sales of 8%, and the improved performance of SM’s China malls.”

“We think that consumer sentiment will remain positive on the back of a strong domestic economy. Moreover, we anticipate this trend to continue as we approach the holiday season, when consumer spending is particularly strong,” SM Prime President Mr. Hans T. Sy said.

SM Prime now has 50 Supermalls: 46 in the Philippines (total gross floor area of 5.5 million sqm) and 4 in China (0.6 million sqm).

By yearend 2012, new malls are expected to bring combined gross floor area to 6.3 million sqm.

China malls

SM Prime now has 4 malls in China, contributing P1.9 billion gross revenues in the first 9 months, or 9% of the entire group’s revenues.

Better occupancy rates (average is 96%), lease renewals and opening of SM Xiamen Lifestyle and SM Suzhou which added 182,000 square meters of gross floor area increased revenues from the 4 China-based malls by 27%.

In December, SM Chongqing in China is scheduled to open.

Philippine malls

In the Philippines, SM Prime grew its nationwide network to 46 malls.

In the past 9 months, it opened SM City Olongapo in Zambales, SM City Consolacion in Cebu, SM City San Fernando in Pampanga, SM City General Santos in South Cotabato and SM Lanang Premier in Davao City.

Below are other financial performance indicators:

  • 9-mo Revenues up 15% to P22.1 billion from P19.27 billion a year ago
  • 9-mo EBITDA rose 12% to P14.6 billion for an EBITDA margin of 66%
  • 9-mo operating expenses increased 14% to P10.45 billion from P9.12 billion due to increase in administrative expenses
  • Q3 Revenues up 15% to P7.52 billion 
  • Q3 net income up 16% to P2.48 billion from P2.14 billion a year ago
  • Q3 EBITDA up 13% to P4.89 billion, foe an EBITDA margin of 65%

– Rappler.com

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