SM Investments’ profit hits P23.8b

Conglomerate SM Investments Corp. of retail tycoon Henry Sy Sr. registered a consolidated net income of P23.8 billion in the first nine months of the year, up eight percent year-on-year, on the strong performance of core businesses.

SM Investments said in a disclosure to the stock exchange consolidated revenues climbed eight percent        to P272.2 billion during the period from P252.7 billion a year ago.

“Our solid third-quarter results benefitted from vibrant growth in our property and retail businesses. Property earnings were driven by nationwide mall expansion and the strong performance of residential developments. Retail also gained from footprint expansion and robust consumer sentiment, particularly in specialty retailing. We remain confident that our growth plans are on track,” SM Investments president Frederic DyBuncio said.

Property accounted for 40 percent of the consolidated earnings. Banks accounted for

38 percent and while retail cornered 22 percent.

Retail operations under SM Retail Inc. posted a 10-percent increase in nine-month net income to P7.7 billion, while total sales hit P197.9 billion, up six percent on year.

SM Store in the first three quarters opened two stores in Cagayan de Oro and in Puerto Princesa, bringing the group’s total total gross selling areas to 750,000 square meters as of the end of September this year.

The food retail group continued its aggressive expansion adding 21 mid-sized format Savemore stores, three SM Supermarkets and two WalterMart stores for a total of 26 new stores year to date. 

Most of these new stores are located in communities outside Metro Manila. 

Meanwhile Alfamart increased its number of stores to 320 as of end-September from 210 at the start of the year.

Integrated property developer SM Prime Holdings Inc. reported a net income of P20 billion in the first nine months of the year, up 15 percent from the same period a year ago, driven by additional rental revenues from mall expansions, consistent growth in same-mall-sales and higher contribution from residential sales.

Banking unit BDO Unibank recorded a net income of P20.4 billion for the first three quarters of the year, up five percent from the same period a year ago, on sustained growth in its core lending, deposit-taking and fee-based businesses.

Total assets of SM Investments grew 16 percent year-on-year to P942.4 billion at the end of September.

Share price of SM Investments on Wednesday closed lost 0.3 percent to P972.50.

Topics: SM Investments Corp
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