SM Prime grows profit 18% in 2019 to ₱38 B

Published February 17, 2020, 12:00 AM

by manilabulletin_admin


SM Prime Holdings, Inc., one of the largest integrated property developers in Southeast Asia, registered an 18 percent growth in consolidated net income to ₱38.1 billion last year from ₱32.2 billion in 2018.

SM Prime President Jeffrey Lim
SM Prime President Jeffrey Lim

In a disclosure to the Philippine Stock Exchange, the firm said its consolidated revenues increased by 14 percent to ₱118.3 billion from ₱104.1 billion, in 2019 and 2018, respectively.

Consolidated operating income went up by 17 percent to ₱56.7 billion last year from the ₱48.3 billion in 2018.

“SM Prime’s continuous growth was brought about by our strategic expansion in the country’s developing cities,” SM Prime President Jeffrey Lim said.

He added that, “We look forward to 2020 as we strengthen our presence in more key areas in the Philippines through sustainable integrated property developments that have great potential to further contribute to the growth of the overall economy.”

SM Prime’s Philippine mall business recorded an 8 percent increase in revenues to ₱57.8 billion in 2019 from ₱53.5 billion in 2018, mainly driven by the 7 percent same-mall-sales growth across all mature malls.

The cinema and event ticket sales reported a 6 percent growth to ₱5.5 billion in 2019 from ₱5.2 billion in 2018, while revenues from amusement, merchandise sales and others went up by 15 percent to ₱3.9 billion in 2019 from ₱3.4 billion in 2018.

Philippine mall operating income improved by 9 percent to ₱32.4 billion in the year reported from ₱29.8 billion of the previous year.

SM Prime has 74 malls in the Philippines offering 8.5 million square meters (sqm.) of gross floor area (GFA) and seven malls in China with 1.3 million sqm. of GFA as of year-end 2019. The Company is set to open three to five new malls in key provincial cities in 2020.

SM Prime’s residential group, led by SM Development Corporation (SMDC), recorded a revenue growth of 24 percent to ₱45.2 billion in 2019 from ₱36.5 billion in 2018.

The operating income surged by 39 percent to ₱17.1 billion from ₱12.3 billion due to higher construction accomplishments of projects as well as fast take-up of various Ready-For-Occupancy (RFO) projects.

SMDC’s reservation sales grew by 24 percent to ₱90.0 billion in 2019 from ₱72.3 billion in 2018. In terms of unit sales, it increased by 11 percent to 23,424 from 21,157.

SM Prime is scheduled to launch 15,000 to 20,000 residential units in 2020 that include high-rise buildings, mid-rise buildings and single detached house and lot projects.