THE holding firm of country’s richest man Henry Sy, Sr. expanded its earnings by 10% in the first nine months of 2018, as its property, banking, and retail units continued to deliver strong results.
In a statement issued Tuesday, SM Investments Corp. (SMIC) posted a net income of P26.2 billion in the nine months ending September, on the back of a 12% growth in revenues to P307.4 billion.
“The results of the first nine months have been reassuring with the resilient performance of property, banking and retail. Our financial results reflect the ongoing strength of consumer sentiment, even as we continue to monitor inflationary pressures,” SMIC President Frederic C. DyBuncio was quoted as saying in a statement.
SMIC’s property business provided 43% of the company’s total revenues, while banks and retail accounted for 36% and 21%, respectively.
The listed conglomerate’s property unit through SM Prime Holdings, Inc. generated a net income of P23.4 billion in the nine-month period, 17% higher year-on-year. This came after a 15% uptick in revenues to P74.6 billion.
The shopping mall unit boosted SM Prime’s performance, as its revenues rose 12% to P43.3 billion, accounting for 58% of consolidated revenues. Same-mall sales growth stood at eight percent, pushing mall rental revenues 12% higher to P36.8 billion.
Meanwhile, the residential group under SM Development Corp. saw its revenues increase by 23% to P25.3 billion. The unit further recorded a 25% rise in reservation sales to P52.8 billion.
For the banking unit, BDO Unibank, Inc. exhibited a six percent profit jump to P21.5 billion. Gross customer loans reached P2 trillion, higher by 17% from a year ago, while total deposits climbed 12% to P2.3 trillion. Net interest income accordingly went up by a fifth to P71.5 billion.
The country’s largest lender expects to hit a net income of P31 billion for full-year 2018.
SMIC’s other bank, China Banking Corp., has yet to release its financial results for the third quarter.
The retail unit through SM Retail, Inc. reported P227 billion in revenues for the period, 11% higher year-on-year. Bottomline growth was slower at 3% to P7.9 billion.
SM Retail consists of both food and non-food stores, ending September with a total of 2,212 stores consisting of 62 The SM Stores, 1,315 specialty retail stores, 56 SM Supermarkets, 50 SM Hypermarkets, 194 Savemore, 52 WalterMart, and 483 Alfamart stores.
The group opened three stores for The SM Store, located inside its newly opened malls in Urdaneta, Telabastagan, and Legazpi. For the food retail group, SMIC added 13 stores for Savemore, four SM Supermarkets, three SM Hypermarkets, and six Waltermart. Its convenience store chain also opened 135 Alfamart outlets.
“SM’s results are in line with our expectations but it was below consensus forecast,” according to COL Financial Group, Inc. Research Analyst Richard Laneda.
Regina Capital Development Corp. Managing Director Luis A. Limlingan also noted that SMIC’s earnings were in line with targets, saying in a mobile message that “net income was up by double digits boosted by the performance of property and retail segments.”
Shares in SMIC shed 4.35% or P40 to close at P880 each at the stock exchange on Wednesday. — Arra B. Francia