SM Investment sees increase in its consolidated net income by 10% to P8.5 billion in Q1 2018. SMIC closed 1.66% at P920 each on Wednesday, May 9.
MANILA, Philippines — SM Investments Corporation (SMIC) sees growth in its consolidated net income by about 10 percent which translates to P8.5 billion in the first quarter of the year, thanks to the strong performances of its shopping malls, real estate, retail businesses and other related operations.
In a press statement released on Wednesday, May 9 the publicly listed holding firm of the Philippine's richest man Henry Sy posted its consolidated revenues skyrocketed by 11 percent to P95 billion during the first quarter, from P85.4 billion a year ago.
"We continue to build on our strong 2017 performance with revenues rising faster in the first quarter this year. Looking ahead we remain cautiously optimistic about underlying consumption trends despite inflationary pressures," SMIC President Frederic C. DyBuncio was quoted as read in a news statement.
SM Investments Corp, has essentially key investments in real estate property, banking, and retail, which accounted for 46%, 32%, and 22%, of its first quarter consolidated network profit, respectively.
SMIC's wholly-owned subsidiary SM Prime Holdings, Inc., the parent company of the SM Group's shopping malls and the country's largest shopping mall operator, saw its profit up by 15 percent to P7.6 billion in Q1 2018, while consolidated revenues increased by 14 percent to P23.4 billion.
SM Prime attributed the soaring net income to the growing revenue contribution of its shopping mall operations in the provinces, as well as higher reservation sales of its residential projects in National Capital Region (NCR).
The shopping mall business recorded for about 59 percent of SM Prime's gross revenues at P13.9 billion, up by 10 percent as compared from a year ago. Moreover, the rentals revenues soared 12 percent to P11.9 billion, thanks to the newly opened shopping malls in the past two years. The same-mall sales, or the performance of malls that have been open for more than a year, upped by 7 percent for same quarter.
As for the revenues from its residential business, led by SMIC's unit SM Development Corp., upped by 25 percent to P7.5 billion.
SM Retail, Inc., which includes supermarkets and department stores, recorded a 14 percent growth in net income to P2.6 billion during the period.
Sales from its specialty retail stores increased 16 percent to P17.4 billion, stimulated by growth and the introduction of new retailing platform such as Miniso.
BDO Unibank, Inc. reported a net income of P5.865 billion in the January-March period of the year, up by 1 percent from P5.83 billion year on year.
The profit obtained from credits climbed by a 5 percent year on year to P22.2 billion, after an 18 percent gain in loan volume to P1.8 trillion.