SY-LED conglomerate SM Investments Corp. (SMIC) said its net income in 2016 grew 8 percent to P31.2 billion on the back of the strong performances of its retail and property segments.
Consolidated revenues improved 9 percent from a year earlier to P362.8 billion, propelled by an 8 percent growth in retail sales and 12 percent growth in property sales.
Property accounted for 39 percent of revenues while banking and retail contributed 37 percent and 24 percent, respectively.
“Our core businesses performed well and continue to grow in line with the country’s strong economic development. We are optimistic about continued development and that government plans for infrastructure, agriculture and tourism in particular will enable broader regional growth. SM continues to prioritize regional investment and our nationwide expansion plans are focused on effective execution,” SM President Harley T. Sy said in a statement.
Retail arm SM Retail Inc. increased net income by 7 percent to P10.6 billion and revenues by 8 percent to P276.5 billion as the company folded in the specialty stores segment, which has more than 1,400 outlets.
As of end-December, SM Retail had a total of 2,110 outlets comprised of 57 The SM Stores; 1,556 specialty retail outlets; 48 SM Supermarkets; 44 SM Hypermarkets; 156 Savemore outlets; 39 WalterMart stores and 210 Alfamart stores.
Property unit SM Prime Holdings Inc. posted earnings growth of 14 percent to P23.8 billion as consolidated revenues rose 12 percent. This was attributed to an 8 percent increase in mall revenues, 13 percent rise in residential sales, and 32 percent surge in commercial office revenue.
SM Prime plans to open four malls in the Philippines this year, which would add 300,000 square meters to its total retail space. The company currently has 60 malls in the Philippines with a total gross floor area (GFA) of 7.7 million sqms, and seven malls in China with GFA of 1.3 million sqms.
Meanwhile, banking arm BDO Unibank Inc. posted a record net income of P26.1 billion in 2016 compared to the previous year’s P25 billion, driven by growth across its business segments. The bank completed its P60 billion stock rights offering in January, proceeds of which will be used to support its loan business.
Affiliate bank China Banking Corp. saw net income rise 15 percent to P6.4 billion on the sustained growth in its core and fee-based businesses.
SMIC holds the Sy family’s businesses in banking (BDO Unibank Inc.), property (SM Prime Holdings Inc.) and retail (SM Retail Inc.). Its affiliates include China Banking Corp. and casino and entertainment firms Belle Corp. and Premium Leisure Corp.