SMIC profit jumps by 13%By Doris C. Dumlao
Philippine Daily Inquirer
Tycoon Henry Sy-led SM Investments Corp. grew its first-half net profit by 13 percent year on year to P10.9 billion on the back of higher earnings from its banking, retailing, shopping mall and residential property businesses.
Total revenue went up by 14 percent year on year to P105.2 billion, as all its core businesses delivered on their sales targets. Cash flow as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) rose by 12 percent to P24.1 billion from year-ago level for an Ebitda margin of 22.8 percent. Return on equity was 14 percent.
In light of the severe flooding that recently hit Metro Manila and some parts of Luzon, SMIC also announced that the group’s corporate social responsibility arm would double relief efforts this year compared to previous calamities.
On its first-semester results, SMIC said banks (Banco de Oro Unibank and China Banking Corp.) continued to provide the biggest contribution to consolidated net income with a 30.9 percent share, followed by retail operations with 28.2 percent. Malls came in third with a share of 24.2 percent followed by property development with 16.7 percent.
SM Retail reported a 7.8-percent year-on-year growth in its six-month net income to P2.7 billion, fueled by a sales growth of 8.3 percent to P73.8 billion. Ebitda was up by 11 percent year on year to P4.9 billion for an Ebitda margin of 7 percent. Net margin was steady at 3.7 percent.
For the last 12 months, the number of stores operated by SM Retail rose by 35. As of end-June, its store network reached 183.
The unlisted real estate arm, SM Land, grew its six-month net profit by 37 percent to P3.2 billion for a net margin of 23 percent. Its first-semester revenues hit P13.9 billion, up by 59 percent year on year. Most of SM Land’s earnings were derived from its residential arm, SM Development Corp. (SMDC).
SMIC’s listed operating units reported the following first-half performance:
– SM Prime Holdings grew its net profit by 15 percent to P4.9 billion on the back of a 15-percent expansion in revenues to P14.6 billion. The growth was attributed to the improved performance of the existing malls both in the Philippines and China.
– BDO Unibank Inc. posted a 15-percent rise in net income to P5.83 billion driven by the increase in both interest income and non-interest income.
– SMDC’s net income rose by 38 percent to P2.7 billion, boosted by a 31.8-percent growth in income from real estate (P2.51 billion).
– SMIC’s total assets expanded by 28 percent to P518.4 billion as of the end of June.
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