SM Investments’ H1 profit jumps 27% to P23B | Inquirer Business

SM Investments’ H1 profit jumps 27% to P23B

By: - Business Features Editor / @philbizwatcher
/ 05:20 AM August 08, 2019

SM Investments Corp. saw a 27-percent year-on-year increase in first semester net profit to P23 billion, led by higher earnings from its banking and property businesses.

“We delivered a strong first half … Our retail business continues to do well and we are pleased with the rapid expansion of our minimart footprint through Alfamart,” SMIC president and CEO Frederic DyBuncio said in a disclosure to the Philippine Stock Exchange.

The property and banking businesses accounted for 41 percent and 40 percent of SMIC’s net income while retail contributed 19 percent.

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Group-wide revenue rose 14 percent year-on-year to P233.7 billion in the first semester.

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SM Retail posted P5.7 billion in net profit for the first six months, flat from the same period last year. While revenue grew by 13 percent year-on-year to P169.8 billion, SM Retail had to make adjustments based on the Philippine Financial Reporting Standards 16, under which a right-of-use asset is recognized and amortized over the lease term while interest expense is incurred on the lease liability.

Excluding the adjustments, net retail income grew by 10 percent year-on-year to P6.3 billion.

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At end-June 2019, SM Retail had a total of 2,600 stores.

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In the same period, the total gross selling area of all department stores stood at 795,864 square meters.

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Revenue from SM Retail’s specialty retail stores grew by 15 percent to P42.6 billion.

Property arm SM Prime Holdings grew net profit in the first semester by 16 percent year-on-year to P19.3 billion.

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Banking arm BDO Unibank grew its net profit in the first semester by 54 percent year-on-year to P20.2 billion.

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TAGS: banking and property businesses, net profit, SM Investments Corp.

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