SMIC net income up 10%

Leading local conglomerate SM Investments Corp. grew its net profit in the first semester by 10 percent year on year to P13.5 billion on higher earnings across its core property, banking and retailing businesses.

Excluding extraordinary items, recurring income rose by 13 percent in the first half, SMIC told the Philippine Stock Exchange.

Property led the growth, expanding its share in SMIC’s consolidated net income to 42 percent, followed by banking, 38 percent, and retail, 20 percent.

Consolidated revenue rose by 6 percent year-on-year to P138.9 billion in the first half.

“Our core businesses continue to deliver good revenue and earnings growth. Earnings growth in property is now in the mid-teens, in line with our medium term goals. The retail group maintained its pace through organic growth and store expansion,” SMIC president Harley Sy said in a statement.

Group-wide margin improved to 9.7 percent from 9.4 percent a year ago.

SM Retail, the only business that is not listed separately on the PSE, posted a 13-percent year-on-year profit growth to P3.1 billion.  This was on the back of a 6-percent growth in total sales to P96.7 billion.

Excluding contribution from new stores, same-store sales by SM department stores grew by 3.7 percent year-on-year in the first semester as the group kept a lid on operating expenditures, SMIC senior vice president for finance Franklin Gomez said.

The SM food retailing group—including the supermarkets—grew same-store sales by 1.2 percent. This unit continued to expand in both urban and rural communities, adding 20 new stores in various parts of the country.