SM Prime nets P5.64B in 1st half of 2013

MANILA, Philippines—The country’s largest shopping mall operator SM Prime Holdings grew its first-semester net profit by 15 percent year-on-year to P5.64 billion as the opening of new malls and higher rental income from existing mall network sustained earnings expansion.

In a disclosure to the Philippine Stock Exchange on Monday, SM Prime reported that year-on-year profit in the second quarter alone likewise grew in the same pace of 15 percent to P2.85 billion on the back of a 16-percent rise in revenues to P8.72 billion.

For the first six months, revenues expanded by 14 percent to P16.55 billion over the level in the same period last year while cash flow as measured by earnings before interest, taxes, depreciation and amortization (EBITDA) likewise rose by 14 percent to P11.09 billion. EBITDA margin stood at 67 percent.

“SM Prime continues to deliver strong revenue growth affirming our positive outlook for 2013. More importantly, the increasing patronage and support that SM supermalls receive from its customers drive us to deliver better services and concepts that cater to the needs of everyone. In return, we take strides to provide greater convenience, diversity, fresh concepts and exciting experiences in all our SM supermalls,” SM Prime president Hans Sy said in a press statement.

“Our offerings at the retail podium in the newly launched SM Aura Civic Center showcased SM Prime’s ability to move away from its comfort zone by catering to a new market, while staying focused in providing affordable luxury to our core market segments,” he said.

In terms of gross revenues, the five malls in China contributed P1.39 billion or 8 percent of six-month consolidated revenues. Counting rental revenues alone, the China operations contributed 10 percent to consolidated rental revenues.

Gross revenues of the five malls in China increased by 9 percent in the first six months of 2013 compared with 2012 largely due to improved mall productivity and lease renewals for the first three malls opened, namely: SM Xiamen, SM Jinjiang, and SM Chengdu. Average occupancy rate for the first three malls is at 93 percent.

In the Philippines, SM Prime has 47 supermalls with a total gross floor area of about six million square mters. Likewise, Its five Supermalls located in the cities of Xiamen, Jinjiang, Chengdu, Suzhou and Chongqing in China have a total gross floor area of around 800,000 sqms.