SM Investments profit up 13% to P4.2 billion in first quarter

MANILA, Philippines – SM Investments Corp. (SMIC), the holding firm for the various business interests of the family of retail tycoon Henry Sy, posted a net profit of P4.2 billion in the first quarter this year, an increase of 13 percent from P3.7 billion a year earlier.

In a financial report submitted to securities regulators, SMIC said consolidated revenues rose 11 percent to P35.2 billion, driven by the steady growth in retail sales.

“SM is prepared to meet the challenge of a changing environment with vigor and a long-term view of the Philippine economy’s resilience. This view sustains us in further expanding and improving our products and services not just to suit market needs, but more importantly, to give value for money to our customers,” said SMIC president Harley Sy.

SMIC is involved in five core businesses: retail and wholesale, mall development, banking and financial services, property development, and hotel and entertainment.

SM retail stores reported first quarter earnings of P1.37 billion, 30.4 percent higher than the P1.05 billion registered in the same period last year. This was generated from sales of P23.7 billion, an improvement of 10.4 percent from the same period last year.

Earlier this year, the group opened a new supermarket and department store in Naga City and three SaveMore branches along Sta.Mesa, Laong-Laan in Manila and P. Tuazon in Quezon City.

To date, SMIC has a network of 102 stores nationwide consisting of 34 department stores; 41 supermarkets (16 of which are SaveMore branches); 13 hypermarkets; and 14 Makro wholesale outlets. SaveMore is the brand for stand-alone grocery stores located outside SM malls, except for one located at The Annex of SM North EDSA.

Meanwhile, earnings of shopping mall unit SM Prime Holdings Inc. increased seven percent to P1.7 billion on revenues P4.7 billion.

Main banking arm BDO Unibank Inc. continued to perform strongly in its core business in the first quarter of 2009 with net interest income expanding 29 percent to P7 billion on healthy spreads and growth in loan volume. Net recurring income stood at P1 billion, a 45-percent increment over that of last year’s first quarter recurring income.

Similarly, China Bank posted a solid performance with net earnings growing 24 percent to P880 million, mainly due to sustained growth in its core banking activities. Net interest income reached P1.93 billion for a 36-percent year-on-year growth.

Net earnings from real estate operations surged 159 percent to P700 million while revenues from real estate operations amounted to P2.4 billion or an expansion of 82 percent from the year earlier level. 

Property development unit SM Development Corp. reported a 30-fold increase in its consolidated net income to P419 million from a meager P14 million, as it more than doubled its sales to P2.4 billion.

This year, SMDC is set to launch the Princeton Residences near the Gilmore LRT-2 Station along Aurora Blvd. in Quezon City; the Jupiter Residences along Jupiter St. in Makati City; the Tree Residences along Felix Ave. in Cainta, Rizal; and the Wind Residences in Tagaytay City.