SM Prime nets P4.9B in 1st semester

Shopping mall developer SM Prime Holdings posted a 15-percent year-on-year growth in profit in the first semester to P4.92 billion on the back of higher store sales, the opening of new local malls and improved performance of its malls in China.

Profit in the second quarter went up by 16 percent to P2.49 billion year on year, which was “better than expected,” according to SM Prime’s disclosure to the Philippine Stock Exchange.

The six-month results were slightly ahead of market consensus, already accounting for 48 percent of the full-year consensus net profit of P10.24 billion, a stock market analyst said.

Given seasonality factors, SM Prime is expected to generate the bulk of its full-year profit in the second half.

Six-month revenues rose by 15 percent year on year to P14.57 billion from a year ago, while cash flow as measured by earnings before interest, taxes, depreciation and amortization rose by 12 percent to P9.71 billion over the same period.

“Better growth resulted from the opening of new Philippine malls in 2010 and 2011, same store sales growth of 8 percent and the improved performance of SM’s China malls,” according to the disclosure.

On the expenditure side, operating expenses in the first six months rose by 15 percent to P6.79 billion year on year. This was attributed to an increase in administrative expenses, particularly, utilities, business taxes and manpower expenses. Income from operations jumped by 15 percent to P7.78 billion from year-ago level.—Doris C. Dumlao