Quantcast
Latest Stories

BDO boosted SM group’s earnings in 1st semester

Sy-led group on track to meeting ’13 targets

By

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.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: BDO , Business , profitability , SMIC

  • upupperclassman

    BDO accounted for 49.7% of SMIC’s income while its operation is about 10% of the group. This suggests that SM should close down its retail business and concentrate in banking.



Copyright © 2014, .
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
Advertisement
Advertisement

News

  • Firetruck rams California eatery; 15 injured
  • 9 confirmed dead after ferry sinks off South Korean coast
  • Aquino to public: Learn to sacrifice
  • 20 killed as Islamic extremists rampage in Nigeria
  • Drug firm Novartis to help Leyte firefighter
  • Sports

  • Walker leads Bobcats over Bulls in OT, 91-86
  • Man City slips further out of title contention
  • Federer would skip tennis to be with wife, newborn
  • Manny Pacquiao in PBA? If so, he’ll wear No. 17
  • PSC sets Blu Girls US training
  • Lifestyle

  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • This is not just a farm
  • Clams and garlic, softshell crab risotto–not your usual seafood fare for Holy Week
  • Moist, extra-tender blueberry muffins
  • Entertainment

  • American rapper cuts own penis, jumps off building
  • Jay Z to bring Made in America music fest to LA
  • Why Lucky has not bought an engagement ring for Angel
  • Derek more private with new girlfriend
  • ‘Community’ star happy with return of show’s creator
  • Business

  • Fired Yahoo exec gets $58M for 15 months of work
  • PH presses bid to keep rice import controls
  • PSEi continues to gain
  • Number of retrenched workers rose by 42% in ’13
  • PH seen to sustain rise in FDIs
  • Technology

  • DOF: Tagaytay, QC best at handling funds
  • Smart phone apps and sites perfect for the Holy Week
  • Tech company: Change passwords or suffer ‘Heartbleed’
  • Filling the digital talent gap
  • SSS to shut down website for Holy Week
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • Syria most dangerous country for journalists, PH 3rd—watchdog
  • Japan says visa-free entry still a plan
  • First Fil-Am elected to Sierra Madre, Calif. city council
  • UC Irvine cultural night to dramatize clash of values in immigrant family
  • Filipino sweets and info served at UC Berkeley Spring Fest
  • Marketplace