SM posts USD405.6m net income in first 9 months of 2014

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Source: Retail In Asia | Wed, 2014-11-12 06:30

SM Investments Corporation (SM) reported a net income of PHP18.2 (USD405.6 million) billion for the first nine months of 2014, up from PHP18.6 billion (USD414.5 million) during the same period last year.

It said retail contributed 19 percent to the consolidated net income, while banks and property accounted for 41.9 percent and 39.1 percent, respectively

“In retail, gross margins have stabilized despite the intensifying competition, and we remain committed to expanding to new formats to tap the unserved and underserved markets,” SM President Harley T. Sy said in a news release.

SM Retail’s net income grew 5 percent to PHP3.8 billion (USD84.6 million). Total sales rose 9.2 percent to PHP136.4 billion (USD3.04 million).

The company said the food retail business is on an aggressive expansion mode to penetrate the informal sector and both urban and rural communities. In the department store business, the SM Store continues to introduce fresh concepts and its expansion is on track in line with the completion of new SM malls.

At the end of the three quarters of 2014, SM Retail opened 16 new stores, bringing the total to 255 stores, consisting of 49 SM Stores, 40 SM Supermarkets, 41 SM Hypermarkets, 102 Savemore stores and 23 WalterMart stores.

Meanwhile, SM Prime Holdings Inc. (SM Prime) reported consolidated net income increased 11.8 percent to PHP13.5 billion (USD300.9 million) in the first nine months. Rental revenues accounted for 55 percent of the consolidated revenues, and grew by 11.2 percent to PHP26.4 billion (USD588.4 million) in 2014, primarily due to the new and expanded malls in 2013 and 2014 such as SM Aura Premier in Taguig, SM City BF Paranaque, Mega Fashion Hall in SM Megamall in Mandaluyong and SM Cauayan in Cagayan Valley.

Cinema ticket sales rose 20.6 percent to PHP3.3 billion (USD73.5 million) in the nine-month period from PHP2.7 billion (USD60.1 million) in 2013 largely due to the international and local blockbuster movies shown as well as the opening of digital cinemas at the new and expanded malls.

The company said amusement and other revenues increased by 20 percent to PHP2.1 billion (USD46.7 million) during the nine-month period due to the strong patronage of amusement rides and additional recreational facilities in various malls.