SM Investments reports 2012 net income of P24.7 B

MANILA, Philippines—Henry Sy’s SM Investments Corp. boosted its net profit last year by 16.3 percent to P24.7 billion on a double-digit rise in earnings across its banking, retailing, shopping mall and residential development businesses.

Revenues increased by 12 percent to P223.9 billion while cash flow as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) went up by 24.2 percent to P54.9 billion, for an Ebitda margin of 24.5 percent, SMIC disclosed to the Philippine Stock Exchange on Wednesday.

This resulted in a return on equity of 14.3 percent for SMIC, the country’s most valuable conglomerate.

“SM’s strong full-year results were anchored not only on very favorable economic conditions, but also on the ability of our businesses to efficiently and effectively address the needs of our customers, who have grown increasingly more discerning,” SMIC president Harley Sy said in a press statement.

“Our performance during the year is testament to the hard work, focus, and dedication of the whole SM organization. With the positive economic outlook for 2013, we are confident of sustaining SM’s expansion and growth moving forward,” Sy said.

Banks accounted for the largest share of SM’s consolidated net income, contributing 34.4 percent of total. Retail operations accounted for 28.1 percent, followed by mall operations with 22.9 percent and property development, with 14.6 percent.

The group’s high-volume retailing business under SM Retail reported a net income of P6.6 billion last year, up by 12.5 percent.  Net margin stood at 4.1 percent.

Retail sales rose by 7.6 percent to P159.5 billion, while Ebitda grew by 13.5 percent to P11.8 billion, for an Ebitda margin of 7.4 percent.

SM Retail expanded last year by a total of 34 stores, consisting of five department stores, four SM Supermarkets, seven SM Hypermarkets and 18 SaveMore stores. At the end of the year, SM Retail had a total of 202 stores, consisting of 46 department stores, 37 SM Supermarkets, 37 SM Hypermarkets, and 82 SaveMore stores.

“In view of the positive outlook for the economy in 2013, SM Retail will continue to expand its various store formats, especially its highly-successful stand-alone SaveMore stores, which are typically located in areas underserved by organized retail,” the company said.