SM consolidated income up 10%

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SM Investments Corp. (SM) said its consolidated net income rose 10 percent to P26.2 billion in the first nine months. Consolidated revenues also grew 12 percent to P307.4 billion from P274.6 billion in the same period in 2017.

“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,” SM president Frederic DyBuncio said.

For the first nine months, property accounted for 43 percent of SM’s reported net earnings, followed by banks at 36 percent and retail at 21 percent.

Retail

Retail operations under SM Retail Inc., which consist of both food (SM Markets) and non-food (The SM Store and Specialty Retail), reported growth in total revenues by 11 percent to P227.0 billion in the first nine months, while net income rose to P7.9 billion from P7.7 billion. Revenues from Specialty Retail grew 16 percent.

The SM Store opened three stores in Urdaneta, Telabastagan and Legazpi during the nine-month period. Total gross selling area of all 62 department stores stood at over 792,000 square meters.

The Food Retail Group added 13 Savemore, four SM Supermarkets, three SM Hypermarkets, and six WalterMart stores for a total of 26 new stores to date. Alfamart added 135 stores.
At end-September, SM Retail had a total of 2,212 stores comprising 62 The SM Stores, 1,315 specialty retail stores, 56 SM Supermarkets, 50 SM Hypermarkets, 194 Savemore, 52 WalterMart and 483 Alfamart stores.

Property

SM Prime Holdings Inc. (SM Prime) reported overall net income growth of 17 percent in the first nine months to P23.4 billion. Consolidated revenues rose 15 percent to P74.6 billion in the first nine months.

The mall business, which accounted for 58 percent of consolidated revenues, grew 12 percent to P43.3 billion. Backed by 8 percent growth in same-mall-sales, mall rental revenues increased by 12 percent to P36.8 billion. Growth was also driven by new malls opened from 2016 to 2018 which are largely in the provinces.

Revenues for the residential group, led by SM Development Corp. (SMDC), increased 23 percent to P25.3 billion in the period and accounted for 34 percent of total revenues. SMDC’s reservation sales grew 25 percent to P52.8 billion in the first nine months.

Banking

BdO Unibank posted a net income of P21.5 billion, up 6 percent. Net interest income grew 20 percent to P71.5 billion, supported by 17 percent increase in gross customer loans to almost P2.0 trillion and a 12 percent growth in total deposits to P2.3 trillion.

Balance sheet

Total assets of SM grew 9 percent to breach the P1 trillion level for the first time. SM maintains a healthy balance sheet with a conservative gearing ratio of 46 percent net debt to 54 percent equity.

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