SM Investments Corp. (SMIC) delivered a 26% profit increase in the first quarter of 2019, boosted the double-digit topline growth of its property, banking, and retail units.
In a statement issued Wednesday, the holding firm of the Sy family said net income hit P10.7 billion, an improvement from the P8.5 billion it posted in the same period a year ago. Consolidated revenues also went up 15% to P109 billion.
“We continued to deliver double-digit growth to both our top and bottom line in the first quarter. Performance was strong across our businesses, particularly for our banks,” SM President Frederic C. DyBuncio was quoted as saying in a statement.
The listed conglomerate’s banking unit contributed 42% of its consolidated net income for the quarter, followed by the property and retail businesses at 40% and 18%, respectively.
BDO Unibank, Inc. saw its net income soar 66% to P9.8 billion during the period, after gross revenues also jumped 37% to P53.69 billion. The company attributed the positive performance to the continued expansion of its core banking operations, the recovery of trading gains to normal levels, and strong results from bank fees and life insurance premiums.
Meanwhile, China Banking Corp. also posted a 24% uptick in consolidated net income to P1.9 billion, thanks to strong growth of its core businesses during the quarter.
For the property segment, SM Prime Holdings, Inc. realized a 16% increase in net income to P8.8 billion during the January to March period, on the back of a 14% increase in revenues to P26.5 billion.
The shopping mall business registered revenues of P15 billion, eight percent higher year on year, accounting for 56% of SM Prime’s topline for the period. This was supported by a seven percent same-mall sales growth.
The residential unit also grew its revenues by 23% to P9.2 billion, following higher construction accomplishments of projects launched from 2015 to 2017, as well as the recognition of recently launched projects.
On the other hand, SM Retail, Inc. said net income went up five percent to P2.7 billion, as revenues also rose 13% to P79 billion.
The retail business includes the food unit through SM Markets, WalterMart, and Alfamart, as well as a non-food unit through The SM Store and specialty stores. Revenues from specialty retail stores alone stood at P19.6 billion, 13% higher year on year.
SM Retail ended the quarter with 2,385 stores, composed of 63 The SM Stores, 1,388 specialty retail stores, 57 SM Supermarkets, 53 SM Hypermarkets, 194 Savemore, 52 Waltermart, and 578 Alfamart stores.
Shares in SMIC closed at P966 each at the stock exchange on Wednesday, higher by 1.79% or P17 from the previous session. — Arra B. Francia