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SM Investments income up 20% as businesses post strong growth

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SM INVESTMENTS Corp. posted a 20% rise in net income last year to P44.6 billion as its business segments performed strongly to boost revenues, the Sy-led company told the stock exchange on Friday.

“We had a good year in 2019 with all our core businesses delivering strong revenue and profit growth. The Retail Group added over 400 stores nationwide whilst the Property Group sustained its growth momentum led by residential and commercial developments. The Banking Group had a particularly good year as net income improved,” SM President Frederic C. DyBuncio said in a statement

Consolidated revenues last year rose 12% to P501.7 billion.

SM Retail Inc. posted a 9% rise in revenues to P366.8 billion, while its net income grew by 10% to P12.5 billion. Retail operations consist of non-food department stores and specialty stores, as well as food stores SM markets.

Last year, The SM Store opened two stores in Ortigas in Pasig City and Olongapo in Zambales, bringing the total gross selling areas of all 65 department stores to 806,230 square meters (sq.m.).

The food group — which includes SM Supermarket, SM Hypermarket and Savemore, Alfamart and WalterMart — added 248 new stores in 2019.

In all, SM Retail added 412 new outlets last year across its portfolio. It ended the year with a total of 2,799 outlets, which are comprised of 65 The SM Stores, 1,609 specialty retail outlets, 58 SM Supermarkets, 52 SM Hypermarkets, 201 Savemore, 60 WalterMart and 754 Alfamart stores.

In the property business, SM Prime Holdings, Inc. registered a consolidated net income growth of 18% to P38.1 billion as consolidated revenues rose by 14% to P118.3 billion.

Mall revenues in the Philippines rose 8% to P57.8 billion, driven by the 7% same-mall-sales growth across mature malls. The cinema and event ticket sales grew by 6% to P5.5 billion. Revenues from amusement, merchandise sales and others jumped by 15% to P3.9 billion.

In the Philippines, SM Prime has 74 malls spanning 8.5 million sq.m. of gross floor area, while in China it has seven malls with 1.3 million sq.m.

SM Prime’s residential group, led by SM Development Corp., posted a revenue growth of 24% to P45.2 billion after higher construction accomplishments.

The rest of its businesses recorded a combined revenue growth of 14% to P9.6 billion. This includes the contributions of ThreeE-Com Center, the opening of National University Mall of Asia, and the new Park Inn by Radisson hotels in Iloilo and in North EDSA, Quezon City.

In banking, BDO Unibank, Inc. reported a 35% rise in net income to P44.2 billion. Net interest income increased by 22% to P119.9 billion, while gross customer loans improved 9% to P2.2 trillion. Deposits rose 3% to P2.5 trillion.

China Banking Corp. posted a 24% rise in net income to P10.1 billion. Its net interest income climbed by 14% to P26.1 billion after a 13% rise in gross loans to P577.9 billion. Total deposits expanded by 7% to P775.4 billion.

“We are confident about the long term growth potential of the country and we will continue to expand. We are committed to maintain a strong balance sheet that gives us the financial flexibility to fend off short term risks and to take on opportunities that may come our way,” Mr. DyBuncio said.

On Friday, shares in SM Investments lost P12.50 or 1.27% to close at P974.50 each. — Victor V. Saulon





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