MANILA, Philippines - Undaunted by the economic crisis affecting many countries worldwide, SM Investments Corp. (SMIC), the listed holding company of retail tycoon Henry Sy, is ramping up its expansion program this year with the addition of 16 new supermarkets, five hypermarkets and two department stores.
Based on documents filed with securities regulators, SMIC said its subsidiaries, which operate 37 supermarkets and 13 hypermarkets, will undertake the nationwide expansion.
In 2008, supermarkets in EDSA Pasay, Parkmall Cebu, Nagtahan, Marikina, Tanay, North Edsa 2 and Cubao were opened whereas in 2007, only two were opened.
The total selling areas of the SM Supermarkets and SM Hypermarkets are 256,007 square meters and 142,316 sqm., respectively.
Makro, an unlisted company engaged in buying and selling of food and non-food items under the warehouse club format, has 14 stores with total leasable space of 107,555 square meters. It was acquired by SMIC in 2007, through its parent holding company, Rappel Holdings Inc.
SMIC’s assets include SM Prime, the largest shopping mall builder in the country; Banco de Oro, the second-biggest lender in the nation by market value; SM Development Corp., which builds residential towers and offices for call centers; and SM Department Stores, the group’s vehicle for its grocery operations.
SMIC reported steady growth in net profit last year, rising 15.6 percent despite a difficult business environment. Net earnings went up to P14 billion on the back of a 19 percent growth in revenues, boosted by strong retail sales.
SMIC’s extraordinary gains from the sale of its shares in San Miguel Corp., which raised P27 billion, has more than compensated for the mark-to-market losses incurred by the group in its trading positions as a result of the global financial crisis.
Excluding extraordinary items, SMIC’s net recurring income went up 11 percent to P11.6 billion. Operating income amounted to P21.7 billion, resulting in an operating margin of 15 percent.
Retail sales expanded 17 percent to P114.8 billion while sales from real estate operations jumped 91 percent.