SMIC books P7B in Q1 net income

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SM Investments Corp. (SMIC posted a marginal growth in net income during the first quarter of the year.

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In a disclosure to the Philippine Stock Exchange on Tuesday, the conglomerate said consolidated net income in January to March inched up by 3.6 percent to P7 billion versus P6.7 billion during the same period last year.

Consolidated revenue rose by 7 percent to P69.8 billion in the same comparable period.

“We are pleased with SM’s strong underlying growth in the first quarter as consumer spending continued to be vibrant and sentiment about the Philippine economy remains strong,” Harley Sy, SMIC president said.

Property contributed the bulk of net income at 43 percent, followed by banks at 36 percent, and retail at 21 percent.

“Our continuing efforts to improve efficiencies in all our businesses have also helped ensure solid earnings growth,” he added.

Property arm SM Prime Holdings Inc. reported a core net income growth of 12 percent to P5.8 billion, with consolidated revenue up 10 percent to P18.2 billion, mainly on rental income.

Rental revenue from malls and commercial spaces, which accounted for 59 percent of the total, grew by 14 percent to P10.8 billion.

Total mall revenue rose 11 percent to P11 billion from P9.9 billion. Excluding the new malls and expansions, same-store growth was 7 percent on average.

The commercial group registered a 16 percent growth in revenue at P887.2 million.

SM Prime’s residential group, which accounted for 32 percent of total revenue, recorded a 5 percent revenue increase at P5.8 billion on higher construction accomplishments of SM Development Corporation (SMDC) projects launched in 2013 to 2015.

The hotels and convention centers business grew by 22 percent to P617.2 million in terms of revenue.

SM Retail Inc., which consists of SM Markets and The SM Store, reported sales growth of 8 percent at P48.8 billion, while net income rose by 16 percent at P1.5 billion.

SM’s food retail business continued to expand, adding five new stores. As of end-March, SM Retail counted 314 outlets including 53 SM Stores, 45 SM Supermarkets, 44 SM Hypermarkets, 140 Savemore stores and 32 WalterMart outlets.

Following the acquisition last year and recent modernization, two Cherry Foodarama grocery stores are fully operational inside SM Cherry malls along Shaw Boulevard and Congressional Avenue.

SM earlier announced the merger of SM Retail with a group of specialty retail stores that include Ace Hardware, SM Appliance Center, Homeworld, Our Home, Toy Kingdom, Watsons, Kultura, Baby Company and Sports Central. The combined entity will have over 1,900 outlets and 2.4 million sqm of gross floor area.

BDO Unibank reported a net income of P5.5 billion as core lending, deposit-taking, and fee-generating businesses delivered solid numbers.

Net interest income grew by 17 percent to P15.5 billion, supported by a 15 percent gain in customer loans at P1.3 trillion and a 14 percent growth in deposits at P1.7 trillion.

Total assets grew by 6 percent to P760.5 billion as the bank maintained a healthy balance sheet with a gearing ratio of 36 percent net debt to 64 percent equity.

SMIC has earmarked between P80 and P85 billion in capital spending this year, two-thirds of which would be sourced from internally generated funds and the rest from loans.

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