SM net income up by 27% to P23 billion in H1 2019
MANILA, Philippines – SM Investments Corporation (SMIC) reported a net income of P23 billion in the 1st half of 2019, 27% higher than the P18.1 billion a year ago.
Consolidated revenues rose by 14% to P233.7 billion from P204.3 billion during the same period in 2018. (READ: FAST FACTS: SM Investments Corporation)
SM's property and banking businesses accounted for 41% and 40% of the net income, respectively, while retail contributed 19%.
Its total assets as of June grew by 5% to P1.1 trillion.
"We delivered a strong 1st half, underpinned by remarkable bank earnings and robust residential take-up. Our retail business continues to do well and we are pleased with the rapid expansion of our minimart footprint through Alfamart," SMIC president and chief executive officer Frederic DyBuncio said.
The retail net income of SM Retail grew by 10% to P6.3 billion, while its revenues soared to P169.8 billion, 13% higher year-on-year.
SM currently has 2,600 stores, which include 63 SM stores, 1,548 specialty stores, 57 SM Supermarkets, 52 SM Hypermarkets, 197 Savemore stores, 55 WalterMart stores, and 628 Alfamart stores.
Its property arm SM Prime reported a net income of P19.3 billion, 16% higher than the 1st half of 2018.
SM Prime's consolidated revenues increased by 15% to P57 billion from P49.8 billion in 2018.
Mall revenues, which consist of rent, cinema, and amusement revenues, accounted for 55% of the total revenues.
SM has a total of 72 malls, with a gross floor plate of 9.7 million square meters as of June 2019. (READ: From Shoemart to SM: A briefer on the Philippines' most ubiquitous mall)
SM Prime's residential group recorded a 26% increase in revenues to P21.4 billion.
Meanwhile, reservation sales of SM Development Corporation rose by 20% to P41.5 billion.
Its net income stood at P20.2 billion in the 1st half of the year, 54% higher than the recorded P13.1 billion in the same period in 2018.
BDO attributed the growth to its core businesses, solid growth in fee income, and trading and foreign exchange gains. – Rappler.com