SMIC net income down 2.1% in Jan-Sept

MANILA, Philippines – Henry Sy’s listed holding company, SM Investments Corporation (SMIC), posted P18.2 billion ($403.89 million*) in net income for the first 9 months of 2014, 2.1% lower from P18.6 billion ($412.62 million) net income recorded in the same period in 2013.

SM Investments’ consolidated revenues, however, grew 7.7% to P193.2 billion ($4.23 billion) in the period ending September 30, from P179.4 billion ($3.98 billion) in the same period last year.

Consolidated net income grew 13.7% to P18.1 billion from P15.9 billion, minus extraordinary trading gains from the group’s banking businesses. The reported net income in 2013 also included exceptional items such as the trading gains in the group’s banking businesses that boosted earnings of a number of banks during that period, among them BDO Unibank.

“We were able to sustain solid revenue growth across our core businesses of retail, banking, and property. We also saw more robust real estate sales in the quarter with the launch of new projects,” SM president Harley Sy said.

Sy added that their underlying profitability was driven by the strong delivery of BDO and steady property contribution, while gross margins in retail have stabilized despite the intensifying competition. Thus, the company remains committed to expanding to new formats to tap the unserved and underserved markets.

Gains from banking, retail units

Banks accounted for 41.9% of the group’s consolidated net income from January-September 2014, followed by property at 39.1%, and retail at 19%.

BDO Unibank recorded a net income of P16.7 billion ($370.46 million) compared with P18.2 billion ($403.73 million) in January-September 2013 which reflected non- recurring trading gains.

Core income however was up 20% year-on-year.

The group’s property unit, SM Prime Holdings, reported an 11.8% increase in consolidated net income in the first 9 months of 2014 to P13.5 billion ($299.47 million) from P12 billion ($266.12 million) in the same period in 2013.

Consolidated revenues also grew 8.5% to P47.8 billion ($1.06 billion) in the January-September period from P44 billion ($975.72 million) the previous year due to strong retail revenues and improving real estate sales.

SMIC’s retail business saw its net income increase by 5% to P3.8 billion ($84.27 million) as total sales rose 9.2% to P136.4 billion ($3.03 billion).

From January to September 2014, SM Retail opened 16 new stores, bringing the total to 255 stores of now – 49 SM Stores; 40 SM Supermarkets; 41 SM Hypermarkets; 102 Savemore stores; and 23 WalterMart stores.

Total assets, meanwhile, of SM Investments grew 8.3% in the first 9 months to P685.6 billion ($15.21 billion). – Rappler.com

 *$1 = P45.09