SMIC profit jumps 8.1% in Q1 on sustained growth of banking, property, retail businesses

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SM operates seven malls in China. This one is the biggest in Xiamen. Its 14-year-old phase one attracts 80,000 people every day, whereas phase two (shown here) draws 40,000 high-end shoppers daily. Coming late this year, SM Tienjin near Beijing, on 540,000 sqm of land, the biggest of them all.

Source: Manila Bulletin | by Maricel Burgonio | May 6, 2015

SM Investments Corporation (SMIC) said its consolidated net income rose 8.1 percent to P6.7 billion in the first quarter of 2015 on sustained growth of banking, property and retail businesses.

“We are focused on expanding all our core businesses given the favorable economic outlook. Our expansion plans are geared towards meeting the needs of underserved customers across the country and to positioning ourselves to compete effectively in each of our growing markets,” SM President Harley T. Sy said in a disclosure to the Philippine Stock Exchange (PSE).

SMIC said it recorded a revenue growth of 7.7 percent to P65.1 billion in the first quarter amid growing economy and business expansion in all core businesses.

Banks accounted for 41 percent of net income while property delivered 40 percent and retail contributed 19 percent.

Retail operations under SM Retail Inc. delivered sustained growth in total sales at 6.5 percet to P44.9 billion, while net income rose 6.5 percent to P1.3 billion.

For SM’s food retail business, it continued to expand in both urban and rural communities, adding 10 new stores in various parts of Luzon, Visayas and Mindanao.

 

SM operates seven malls in China. This one is the biggest in Xiamen. Its 14-year-old phase one attracts 80,000 people every day, whereas phase two (shown here) draws 40,000 high-end shoppers daily. Coming late this year, SM Tienjin near Beijing, on 540,000 sqm of land, the biggest of them all.
SM operates seven malls in China. This one is the biggest in Xiamen. Its 14-year-old phase one attracts 80,000 people every day, whereas phase two (shown here) draws 40,000 high-end shoppers daily. Coming late this year, SM Tienjin near Beijing, on 540,000 sqm of land, the biggest of them all.

As of end-March, SM Retail had a total of 279 stores, comprising 50 THE SM STORES, 40 SM Supermarkets, 43 SM Hypermarkets, 120 Savemore stores and 26 WalterMart stores.

BDO Unibank, Inc. (BDO), meanwhile, recorded net interest income growth of 9.3 percent to P13.3 billion in the first three months. Its net income rose 12 percent to P6.1 billion in the first quarter.

SM Prime Holdings, Inc. registered revenues of P16.7 billion, an increase of 9 percent on the first quarter 2014. Its net income surged 176 percent to P12.6 billion, including an extraordinary gain of P7.4 billion from the sale of marketable securities.

Excluding the one-time gain, net income grew 14 percent to P5.2 billion in the first quarter.

SMIC said revenues from retail and commercial spaces grew 10 percent to P9.4 billion.

The housing group, meanwhile, recorded a 6.7 percent increase in real estate sales to P5.4 billion, with reservation sales increasing 34 percent to P9.5 billion.

Total assets of SM grew 14 percent to P718.5 billion in the first three months of the year.

SM maintains a healthy balance sheet with a conservative gearing ratio of 32 percent net debt to 68 percent equity.