Henry Sy's SM posts 11% profit growth, thanks to BDO
MANILA, Philippines – SM Investments Corporation (SMIC) reported Monday, March 3 that its 2013 net income increased 11% to P27.45 billion from P24.67 billion in 2012. The Henry Sy-owned company attributed the growth to the strong performance of businesses, mainly banking.
"SM's full year earnings for 2013 reflect the overall progressive economic environment of the country," said SMIC president Harley Sy.
However, he said growth was "tempered by competitive dynamics and the effects of continuous climate change," referring to the string of typhoons that hit the country.
"With that in mind,” Sy added, "SM is constantly evolving to take advantage of the enormous opportunities that are made available by a fast emerging economy. SM will remain focused on its core businesses of retail, property, and banking with portfolio investments in high-growth emerging sectors."
SMIC disclosed to the Philippine Stock Exchange that banks provided the largest share of the group’s net income, contributing 42.8%. The property group, made up of malls and residential units, accounted for 35.9%. Retail accounted for 21.3%.
Below are the financial results of each subsidiary:
- BDO Unibank Inc - Net income increased 56% to P22.6 billion from P14.5 billion
- SM Prime Holdings - Consolidated revenues rose 5% to P59.79 billion from P57.22 billion; rental revenues grew 11% to P32.20 billion
- SM Retail - Net income of P5.6 billion, with sales growing 14% to P180.9 billion. SM Retail has 241 stores, comprised of 48 SM Department stores, 39 SM Supermarkets, 39 Hypermarkets, 93 SaveMore stores, and 22 Walter Mart supermarkets
SMIC acquired other companies to expand its office and retail portfolios. It bought a 90% stake in CPI Asia Ten B.V., a company owning and operating 5 commercial buildings in Fort Bonifacio’s Global City. It also acquired 34% of CityMall Commercial Center Inc. – Rappler.com