SM registers ₱44.6-B income in 2019, up 12%

Published February 28, 2020, 12:00 AM

by manilabulletin_admin


SM Investments Corporation (SM), the flagship of the Sy family, reported a 20 percent hike in net income to ₱44.6 billion last year from ₱37.1 billion in 2018.

In a disclosure to the Philippine Stock Exchange, SM said its consolidated revenues increased 12 percent to ₱501.7 billion in 2019 from ₱449.8 billion in the previous year.

“We had a good year in 2019 with all our core businesses delivering strong revenue and profit growth,” SM President Frederic C. DyBuncio said.

He noted that, “The Retail Group added over 400 stores nationwide whilst the Property Group sustained its growth momentum led by residential and commercial developments. The Banking Group had a particularly good year as net income improved.”

“We are confident about the long-term growth potential of the country and we will continue to expand. We are committed to maintain a strong balance sheet that gives us the financial flexibility to fend off short-term risks and to take on opportunities that may come our way,” DyBuncio added.

Operations under SM Retail Inc., which consist of non-food (The SM Store and specialty stores) and food stores (SM Markets), reported total revenues grew 9 percent to ₱366.8 billion. Net income increased 10 percent to ₱12.5 billion.
The SM Store opened two new stores in Ortigas in Pasig City and Olongapo in Zambales. Total gross selling areas of all 65 department stores in 2019 stood at 806,230 square meters.

The food group, which includes SM Markets (SM Supermarket, SM Hypermarket and Savemore), Alfamart and WalterMart, added 248 new stores in 2019.

SM Retail added a total of 412 new outlets in 2019 across the portfolio.

SM Prime Holdings recorded consolidated net income growth of 18 percent to ₱38.1 billion from ₱32.2 billion the previous year. Consolidated revenues increased by 14 percent to ₱118.3 billion from ₱104.1 billion.

BDO Unibank, Inc. (BDO) posted a net income of ₱44.2 billion, up 35 percent while China Banking Corporation (China Bank) reported a net income growth of 24 percent to ₱10.1 billion.

The total assets of SM grew 8 percent to ₱1.1 trillion. SM maintains a healthy balance sheet with a conservative gearing ratio of 36 percent net debt to 64 percent total equity.