SM gets income boost from property, retail units
MANILA, Philippines – Listed SM Investments Corporation saw its consolidated net income rise by 10% to P8.5 billion in the 1st 3 months of 2018, from the P7.7 billion in the same quarter a year ago, thanks to strong performance of its property and retail businesses.
SM told the Philippine Stock Exchange (PSE) on Wednesday, May 9, that its property unit SM Prime Holdings Incorporated accounted for 46% of the group's consolidated net income.
This was followed by banks at 32% and retail at 22%, SM said in its disclosure. (READ: Doing business under Duterte? Philippines' richest family shows how)
The holding conglomerate saw its consolidated revenues rise by 11% to P95 billion in the 1st 3 months of the year, from P85.4 billion in the same quarter in 2017.
"We continue to build on our strong 2017 performance with revenues rising faster in the 1st quarter this year," SM president Frederic DyBuncio said.
"Looking ahead we remain cautiously optimistic about underlying consumption trends despite inflationary pressures," he added. (READ: FAST FACTS: SM Investments Corporation)
For SM Retail Incorporated, which consists of both food and non-food, its net income went up by 14% to P2.6 billion in the 1st quarter of the year.
As of end-March, SM Retail had a total of 2,081 stores, comprised of 59 SM Stores, 1,283 specialty retail stores, 53 SM Supermarkets, 47 SM Hypermarkets, 186 Savemore stores, 46 WalterMart stores, and 407 Alfamart stores.
SM Prime saw 15% growth in net income in the1st 3 months of the year to P7.6 billion, while consolidated revenues rose 14% to P23.4 billion.
SM's banking units BDO Unibank Incorporated and China Banking Corporation also contributed strongly to the group's positive 1st quarter results.
For the 1st quarter of 2018, BDO posted a net income of P5.9 billion, steady from the year-ago level; while China Bank saw a 2% growth in net income to P1.5 billion.
As of end-March, total assets of SM grew 9% to P972.1 billion.
For 2018, the SM group has earmarked P90 billion in capital expenditures, primarily to fund expansion of its retail, banking, and property businesses. – Rappler.com