SM Group 9-mth profit down 2%

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SM Investments Corp. (SMIC), the conglomerate of business magnate Henry Sy, reported a slight decline in net profit for the first nine months due to low trading gains from its banking unit.

In a statement e-mailed to media, SMIC said its net income from January to September slipped 2.1 percent to P18.2 billion from P18.6 billion in the same period last year as its banking unit posted lower profits.

Revenues, on the other hand, rose 7.7 percent to P193.2 billion from P179.4 billion on sustained growth across its property, banking and retail businesses.

“We were able to sustain solid revenue growth across our core businesses of retail, banking and property. We also saw more robust real estate sales in the third quarter with the launch of new projects. Our underlying profitability was driven by the strong delivery of BDO and steady property contribution,” said SM president Harley T. Sy.


“In retail, gross margins have stabilized despite the intensifying competition, and we remain committed to expanding to new formats to tap the unserved and underserved markets,” he added.

In terms of net income, contributors were the banking segment (41.9 percent), property (39.1 percent), and retail (19 percent).

Its banking unit BDO Unibank Inc. saw a decline in net profit for the first nine months to P16.8 billion from P18.2 billion a year ago on lower trading gains.

Sy’s property subsidiary SM Prime Holdings Inc., on the other hand, posted 11.8 percent income growth in the nine months to P13.5 billion from P12 billion last year.

Its revenues also increased 8.5 percent to P47.8 billion from P44 billion last year.

SM Retail Inc.’s net income also advanced 5 percent from last year to P3.8 billion, while total sales rose 9.2 percent to P136.4 billion compared to a year ago.

SMIC’s business interests are in property (SM Prime Holdings Inc.), banking (BDO Unibank Inc.) and retail (SM Retail Inc.). It also has affiliates such as China Banking Corp. and casino and entertainment firms Belle Corp. and Premium Leisure Corp.

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