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SM profits down 48% in 2020
SM Investments Corporation (SMIC) reported a 48% drop in its net income in 2020, as consumer confidence weakened amid the coronavirus pandemic.
SMIC said it earned P23.4 billion in 2020, much lower than the P44.6 billion in 2019.
The group's consolidated revenues stood at P394.2 billion, 21.5% lower than the P502 billion recorded in 2019.
"Our businesses continued to build momentum through the end of 2020 as they addressed the changed behaviors and needs of our customers. Our banks, food retailing, and residential property all performed well, while our malls and non-food retail operations showed steady improvements as conditions allowed," SMIC president Frederic DyBuncio said.
The group's banking and property businesses accounted for 55% and 33% of net income, while retail contributed 12%.
Retail
SM Retail reported a 67% drop in net income to P4.1 billion and a 19% drop in revenues to P296.8 billion.
As of end-2020, SM Retail had a total of 3,019 outlets, including SM Stores, specialty retail stores, SM Supermarkets, SM Hypermarkets, Savemore, WalterMart, and Alfamart.
The subsidiary opened two new stores in Butuan and Zamboanga amid the pandemic.
Property
SM's property arm, SM Prime Holdings, saw a 52.8% drop in its net income, dropping to P18 billion in 2020 from P38.1 billion in 2019.
Its mall business saw a 59% drop in revenues, as rental income and foot traffic significantly dipped.
The conglomerate's residential business, SM Development Corporation, saw a 6% revenue growth in 2020, as reservation sales grew despite the pandemic.
Banking
BDO Unibank posted a net income of P28.2 billion, down by 36%, as it increased provisions for loan losses.
It set aside P30.2 billion against potential delinquencies or non-performing loans. – Rappler.com
Ralf Rivas
@RalfRivasA sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.
