SM Investments Corp. (SMIC), the holding firm of the richest man in the Philippines, Henry Sy, said its consolidated net income improved by 7 percent to P19.4 billion in the first nine months of the year, from P18.15 billion a year earlier, due to the strong performance of its property and retail businesses.
Revenues rose 7 percent to P206.2 billion from P193.21 billion in the comparable period a year earlier on the back of a 21-percent increase in its retail business and 15 percent in recurring net income from its property arm, the group said in its disclosure to the Philippine Stock Exchange.
“Our strong results year-to-date reflect our ongoing focus on delivering footprint expansion across the country and on driving cost competitiveness in all our core businesses,” SM President Harley Sy said.
Revenues came from units BDO Unibank Inc. (40 percent), SM Prime Holdings Inc. (39 percent), and SM Retail Inc. (21 percent).
Subsidiaries’ income contributions
SM Prime’s net income soared 70 percent to P22.9 billion from P13.5 billion, including a one-time gain in the first quarter of 2015.
SM Retail posted a 21 percent increase in net income to P4.6 billion from P3.8 billion. Total sales picked up by 6.5 percent to P145.3 billion from P136.4 billion.
The retail group added 20 new outlets, most of which are standalone Savemore stores.
To date, SM Retail has 294 stores, including 51 The SM Stores, 41 SM Supermarkets, 43 SM Hypermarkets, 130 Savemore stores and 29 WalterMart stores. As of end-September, the total gross selling area of The SM Stores reached 682,997 square meters.
SM Investments has programmed up to P85 billion for capital spending, the bulk of which will go to property vehicle SM Prime. This will be sourced from internally generated cash (60 percent) and loans or bonds issuance (40 percent).
SMIC holds the three main businesses of the Sy family: property (SM Prime), banking (BDO Unibank), and commercial retail (SM Retail). The group’s affiliates include China Banking Corp. and casino and entertainment firms Belle Corp. and Premium Leisure Corp.