SM Investments’ income up on strong core businesses

Rappler.com
SM Investments’ income up on strong core businesses

Rob Reyes

The listed conglomerate of the Philippines' richest man, Henry Sy Sr, benefits from growth in its property and retail units

MANILA, Philippines – SM Investments Corporation (SMIC), the conglomerate of Henry Sy Sr, saw its net income increase by 8% to P23.8 billion in the 1st 9 months of the year, due to the strong performance of its core businesses.

SMIC told the Philippine Stock Exchange (PSE) on Wednesday, November 8, that its consolidated revenues rose by 8% to P272 billion in the January to September period of 2017, from P252.7 billion in the same period last year.

“Our solid 3rd quarter results benefitted from vibrant growth in our property and retail businesses,” SM president Frederic DyBuncio said in a statement.

“Property earnings were driven by nationwide mall expansion and the strong performance of residential developments. Retail also gained from footprint expansion and robust consumer sentiment, particularly in specialty retailing. We remain confident that our growth plans are on track,” DyBuncio added.

Property accounted for 40% of consolidated earnings in the 1st 9 months, followed by banks at 38%, and retail at 22%.

Retail operations under SM Retail Incorporated saw a 10% hike in 9-month net income to P7.7 billion, while total sales were at P197.9 billion, 6% higher than the same period last year.

During the January to September period, SM Store opened two stores in Cagayan de Oro and in Puerto Princesa, Palawan. (READ: Doing business under Duterte? Philippines’ richest family shows how)

This brought the SM group’s total gross selling area to 750,000 square meters as of end-September.

Meanwhile, its food retail group continued its aggressive expansion, adding 21 mid-sized format Savemore stores, 3 SM Supermarket branches, and two WalterMart stores, totaling 26 new stores year-to-date.

Most of these new stores were located in communities outside Metro Manila.

Meanwhile, Alfamart increased its number of stores to 320 as of end-September from 210 at the start of 2017.

SM Prime Holdings’ net income increased by 15% to P20 billion in the 1st 9 months of 2017, from the same period a year ago, driven by additional rental revenues from mall expansions, consistent growth in same-mall-sales, as well as higher contribution from residential sales.

BDO Unibank Incorporated, meanwhile, saw a 5% increase in net income to P20.4 billion in the 1st 3 quarters of the year, thanks to sustained growth in its core lending, deposit-taking, and fee-based businesses.

Shares of the SM group closed lower by 0.26% to P972.50 each on Wednesday. – Rappler.com

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