SMIC net income jumps 27% to P23 billion in first semester

Published August 7, 2019, 12:00 AM

by manilabulletin_admin

By James A. Loyola

SM Investments Corporation (SMIC) reported a 27 percent jump in net income to P23.0 billion in January to June of 2019 from P18.1 billion in the same period last year.

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In a disclosure, the firm said consolidated revenues rose 14 percent to P233.7 billion in the first half from P204.3billion in the same period last year.

“We delivered a strong first half, underpinned by remarkable bank earnings and robust residential take-up. Our retail business continues to do well and we are pleased with the rapid expansion of our minimart footprint through Alfamart,” SMIC President and Chief Executive Officer Frederic C. Dy Buncio said.

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

“Our performance reflects our commitment to sustainable operations and adherence to good corporate governance which has been affirmed by our recent inclusion in the FTSE4Good index,” Dy Buncio said.

SM Retail reported sustained growth in revenues of 13 percent to P169.8 billion while net income was at P5.7 billion. Excluding the adjustments due to the adoption of Philippine Financial Reporting Standards, retail net income grew 10 percent to P6.3 billion.

At end-June 2019, SM Retail had a total of 2,600 stores, comprising 63 The SM Stores, 1,548 specialty stores, 57 SM Supermarkets, 52 SM Hypermarkets, 197 Savemore stores, 55 WalterMart stores and 628 Alfamart stores.

Revenues from SM Retail’s specialty retail stores grew 15 percent to P42.6 billion, in part driven by expansion and strong same store growth.

SM Prime reported net income of P19.3 billion in the first half of the year, up 16 percent. Consolidated revenues also increased by 15 percent to P57.0 billion from P49.8 billion in the same period last year.