BDO boosted SM group’s earnings in 1st semester
Sy-led group on track to meeting ’13 targets
More News from Philippine Daily Inquirer
Tycoon Henry Sy-led SM Investments Corp., the country’s most valuable conglomerate, grew its first semester net profit by 16 percent year-on-year to P12.6 billion led by the group’s robust banking business.
This six-month performance puts the conglomerate on track with its targeted growth of 14-15 percent for the full year, SMIC chief finance officer Jose Sio told reporters.
Banks led by Banco de Oro Unibank accounted for the largest share of SM’s consolidated net income, contributing 49.7 percent of total. Retail merchandising contributed 20 percent, followed by commercial centers or the mall operations and real estate at 18.4 percent and 11.9 percent, respectively.
“Our first half financial results is ahead of our full-year target as BDO Unibank delivered stellar performance from trading gains. We expect the second half to normalize but still on the back of the strong growth expectations of all our core businesses. The Philippines is in a unique position to support a vibrant domestic consumer sector. This gives us reason to pursue our growth and expansion plans over the medium term,” SM president Harley Sy said.
Group-wide revenues likewise increased by 16 percent to P122.1 billion in the first six months while cash flow as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) rose by 26 percent to P30.1 billion, for an Ebitda margin of 24.7 percent.
SM’s retail business reported a net income of P3.1 billion, up by 9.9 percent year-on-year in the first half, for a net margin of 3.7 percent. Sales rose by 13.3 percent to P83.6 billion. The country’s largest retailer ended the semester with a total of 209 stores, consisting of 48 SM department stores, 38 SM Supermarkets, 37 SM Hypermarkets and 86 SaveMore stores.
Same-store sales grew by 4 percent for the department store group and 2-3 percent for the food group. The group expects to close its investment agreement with the Waltermart grocery and department store chain by the end of the current quarter. Sy said the group would be open to more acquisition opportunities in the future.
Get Inquirer updates while on the go, add us on these apps:
Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of INQUIRER.net. We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City,Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94