SMIC profit up 15% in ’10

MANILA, Philippines—Tycoon Henry Sy’s flagship holding firm, SM Investments Corp., posted a 15-percent growth in its 2010 net income to P18.4 billion.

SMIC’s consolidated revenue rose by 12 percent to P179.3 billion from a year before, the company disclosed to the Philippine Stock Exchange.

“The better-than-expected 2010 results demonstrate the ability of SM to benefit from an economic resurgence,” SMIC president Harley Sy said.

Among SM’s businesses, the retail group contributed the most to the 2010 profit, accounting for 34 percent of the total. The banking group came in second, with 30 percent, while shopping malls and real estate contributed 23 percent and 13 percent, respectively.

“We are very bullish in the economy and also for our business. We have announced a capital spending budget of P49 billion and we’re sticking to that,” SMIC chief finance officer Jose Sio said.

When asked about the outlook for this year, Sio said the group was closely watching the developments in the Middle East-North Africa and was hoping that the situation would not deteriorate further.

The retail group reported a full-year 2010 net income of P5.6 billion, up by 25.2 percent, and an increase in the margin to 4.2 percent from 3.6 percent. Total sales grew by 9.1 percent to P135.1 billion.

In banking, Banco de Oro Unibank and China Bank posted record-high profits of P8.8 billion and P5 billion, respectively, up by 46 percent and 22 percent from the previous year.

Shopping mall unit SM Prime Holdings reported a 12-percent growth in consolidated net income to P7.9 billion on the back of a 16- percent rise in revenue to P23.7 billion.