SMIC nets P21B in 2011
MANILA, Philippines—SM Investments Corp. grew its consolidated net profit last year by 15 percent to P21.2 billion on higher earnings from its banking, retailing, shopping mall and real estate businesses.
In a disclosure to the Philippine Stock Exchange on Wednesday, tycoon Henry Sy’s holding company reported a 13 percent rise in consolidated revenues to P200.7 billion from the previous year as all core businesses reported strong growth.
Among SM’s core businesses, banking contributed most to the conglomerate’s 2011 profits with a 31.1 percent share. The retail group came in second with a share of 30.2 percent, followed by shopping malls and real estate, which contributed 23.5 percent and 15.2 percent, respectively.
In a press statement, SMIC president Harley Sy said: “2011 proved to be a favorable year for SM, as it was able to continue delivering positive results amid increased challenges in the external environment. This was achieved through the focused efforts displayed by the hardworking men and women behind the whole SM organization. We also take comfort in the firm support and unfailing patronage of our customers, shareholders and other stakeholders. Such support behind us makes us look to 2012 with added optimism in sustaining SM’s growth and expansion.”
Banking unit Banco de Oro Unibank reported a net income of P10.5 billion in 2011 while China Bank chalked up a net income of P5 billion for the full year.
SM Retail reported a full year 2011 net income of P5.8 billion, up by 3 percent from the previous year. Total sales for the group expanded by 9 percent to P148.2 billion. Its continued expansion, particularly through new SaveMore branches, remained a key driver of the group’s performance as another 25 new branches were opened last year compared with 14 the previous year. Overall, the retail group opened 34 new stores in 2011, for a total of 169 stores by the end of the year. The store network is broken down as follows: 41 department stores, 33 supermarkets, 65 SaveMore branches and 30 hypermarkets.
SMIC said store expansion in 2012 would continue to focus on the provinces for the anchor stores located at the malls, while SaveMore would see its number of stores growing by 30 to 40 stores nationwide.
SM Prime Holdings reported a 15-percent rise in consolidated net income to P9.1 billion brought about by a mix of expanded capacity from new malls in the Philippines that opened in 2010 and 2011 and a healthy same-store rental growth of 7 percent. In addition, SM Prime’s four shopping malls in China sustained their robust growth, with net income doubling to P889 million in 2011 from P428 million a year ago.
Fast-growing residential property unit SM Development Corp. grew its consolidated net income by 38 percent P4.18 billion last year from a year ago.
