SMIC net profit up 10% in Jan to Sept

The country’s largest conglomerate, SM Investments Corp., grew its net profit in the first nine months by 10 percent year-on-year to P26.2 billion, driven mainly by the double-digit expansion in earnings from its property business.

Consolidated revenue in January to September rose by 12 percent to P307.4 billion, SMIC told the Philippine Stock Exchange yesterday.

“The results of the first nine months have been reassuring with the resilient performance of property, banking and retail. Our financial results reflect the ongoing strength of consumer sentiment, even as we continue to monitor inflationary pressures,” SM president Frederic DyBuncio said in a statement.

For the first nine months, property accounted for 43 percent of SM’s reported net earnings, followed by banks at 36 percent and retail at 21 percent.

Retail operations under SM Retail Inc.—both food (under the brand SM Markets) and nonfood (under the department store brand The SM Store and Specialty Retail)—reported a revenue growth of 11 percent to P227 billion during the period.
Revenue from specialty retail—including fashion brands and other outlets—grew by 16 percent.
Despite stiff competition and higher inflation, net income rose by 2.6 percent to P7.9 billion.
The SM Store opened three stores in Urdaneta, Telabastagan and Legazpi during the period. Total gross selling area of all 62 department stores stood at over 792,000 square meters.

The food retail group added 13 Savemore, four SM Supermarkets, three SM Hypermarkets and six WalterMart stores for a total of 26 new stores to date. Alfamart added 135 stores.

At end-September, SM Retail had a total of 2,212 stores comprising 62 The SM Stores, 1,315 specialty retail stores, 56 SM Supermarkets, 50 SM Hypermarkets, 194 Savemore, 52 WalterMart and 483 Alfamart stores.

Earlier, SM Prime Holdings reported a 17-percent jump in its overall net income in the first nine months to P23.4 billion. Consolidated revenue rose by 15 percent to P74.6 billion.

Leading lender BDO Unibank posted a net income of P21.5 billion, up by 6 percent on higher net interest earnings.

At end-September, total assets of the conglomerate grew by 9 percent to breach the P1 trillion level for the first time.