(Source: Business World | March 1, 2019)
SM Investments Corp. (SMIC) increased its earnings by 13% in 2018, as the company’s property, banking, and retail units continued to show steady growth.
The listed holding company said net income rose to P37.1 billion last year, higher than the P32.9 billion it posted in 2017. Consolidated revenues likewise went up 13% to P449.8 billion.
“Our very good results in 2018 were driven by all three core businesses, retail, banking and property, each of which delivered strong revenue growth and also strong earnings growth,” SM President Frederic C. DyBuncio said in a statement.
“We remain optimistic about the economic environment and growth opportunities for the group in 2019.”
The listed conglomerate’s property unit provided 41% of the group’s earnings in 2018, followed by banks and retail which accounted for 38% and 21%, respectively.
SM Prime Holdings, Inc., the holding firm for SMIC’s property investments, saw its net income climb 17% to P32.2 billion after a 14% uptick in consolidated revenues to P104.1 billion.
The property unit benefited from the provincial expansion of its shopping malls, which delivered revenues of P59.3 billion, 11% higher year on year. Rental income gained 11% to P50.5 billion, also due to higher contributions from new and expanded malls in the provinces.
SM Prime ended 2018 with 72 malls in the Philippines covering a gross floor area of 8.3 million square meters (sq.m.), while seven malls spanning 1.3 million sq.m. are located in China.
SM Retail grew at 8%
SM Retail, Inc. posted a net income of P11.3 billion, eight percent higher than its P10.4 billion record in 2017. Total revenues rose by 12% to P335.6 billion in the same period. The firm covers SMIC’s food and non-food businesses.
SM Retail added 335 new stores in 2018, ending the year with a total of 2,328 outlets consisting of 63 The SM Stores, 1,383 specialty retail outlets, 56 SM Supermarkets, 53 SM Hypermarkets, 195 Savemore, 52 WalterMart, and 526 Alfamart stores.
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