SMIC profit up on 14.4% recurring income growth


SM Investments Corp. (SMIC), the holding firm of tycoon Henry Sy, said its consolidated net income grew 3.6 percent last year, boosted by a 14.4 percent jump in recurring income.

SMIC’s consolidated net income rose to P28.4 billion in 2014 from P27.4 billion a year earlier while its consolidated revenues climbed 9 percent to P275.7 billion from P253.3 billion previously on strong retail and property sales.

“The group’s strong underlying earnings growth of 14.4 percent in 2014 was the result of a solid performance and an ongoing expansion in all our three core businesses,” SM president Harley T. Sy said.

“During the year, we raised additional capital and entered into several strong partnerships, accelerating our investments for growth and ensuring we expand in line with our continuing optimism about the economic prospects of the Philippines,” he said.

Revenues were mostly driven by the bank segment, which contributed a 41 percent share of the total, while the rest were contributed by the property segment via SM Prime Holdings Inc. (38 percent) and retail through SM Retail Inc. (21 percent).

Its banking units BDO Unibank Inc. and China Banking Corp. both posted good performances last year, recording net incomes of P22.8 billion and P5.11 billion, respectively.

In its property segment, SM Prime recorded double-digit growth, booking P18.4 billion consolidated net income in 2014, which is 13 percent higher than the previous year’s P16.72 billion, while consolidated revenues advanced 11 percent to P66.2 billion from P59.79 billion.

SMIC’s retail subsidiary, SM Retail, also increased its net income last year by 3.3 percent to P5.9 billion while revenues rose 9 percent to P197.1 billion aided by new stores and growing community malls and supermarket presence through its relationship with CityMalls and WalterMart and developing small format mini-marts in conjunction with Alfamart.

By end-2014, SM Retail had a total of 269 stores, comprising 50 SM Stores, 40 SM Supermarkets, 42 SM Hypermarkets, 113 Savemore stores and 24 WalterMart stores.

Last year, SMIC raised separate amounts of P15 billion and $350 million from bond issuances in May and June, respectively. Both fund-raising initiatives were used to finance the company’s spending program for 2014.

SMIC is the holding firm of the Sy family, having business interests in property (SM Prime Holdings Inc.), banking (BDO Unibank Inc.) and retail (SM Retail Inc.). It also has other affiliates such as China Banking Corp. and casino and entertainment firms Belle Corp. and Premium Leisure Corp.


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