SMIC net income up 13% to P5.37B in first quarter

Manila, Philippines - SM Investments Corp. (SMIC), the investment holding firm of the family of retail tycoon Henry Sy, chalked in a net income of P5.37 billion in the first quarter this year, up 13 percent from the previous year’s level amid tough challenges brought about by the continuing conflict in the Middle East.

In a financial report submitted to securities regulators, SMIC said banking contributed 31.9 percent of groupwide earnings, followed by malls with 25.4 percent, retail (24.7 percent) and real estate (18 percent).

Consolidated revenues amounted to P43.4 billion, 7.6 percent higher than the P40.35 billion recorded the previous year.

“SM started the year on a positive note. The encouraging first quarter results indicate the company’s capability to sustain its growth and expansion in spite of current challenges brought on by fuel price hikes and the political uncertainty in the Middle East and North Africa, which is affecting some of our overseas Filipino workers. As we continue to keep an eye on these developments, we remain confident that we will meet our targets for the succeeding quarters of the year,” SMIC president Harley T. Sy said.

Main banking arm Banco De Oro Unibank Inc. reported an 18 percent increase in net profit to P2.44 billion. Net interest income rose two percent to P8.5 billion while gross customer loans grew 16 percent to P42.3 billion.

Mall developer SM Prime Holdings Inc., on the other hand, reported a 12-percent jump in net earnings to P2.12 billion from P1.89 billion. Revenues expanded13 percent to P6.07 billion while EBITDA (earnings before interest, taxes, depreciation and amortization) rose 11 percent to P4.19 billion, for an EBITDA margin of 69 percent. These results include the operations of the three SM malls in China, located in the cities of Xiamen, Jinjiang and Chengdu.

For 2011, SM Prime plans to open three new malls in the country and one in China. It is scheduled to open SM City Masinag today, making it the 41st shopping mall in the country and its second in the province of Rizal after SM City Taytay. The new mall has a gross floor area of 90,261 square meters (sqm) and occupies 37,017 sqm of land.

Meanwhile, the retail group reported a net income of P913 million on sales of P31 billion, which grew seven percent from last year’s P29 billion. It opened three new stores in the first three months of 2011, for a total number of 142. The total consists of 40 department stores for the non-food group; 102 for the food group, of which there were 30 supermarkets, 43 SaveMore branches, 25 hypermarkets and four Makro outlets.

Property unit SM Development Corp., which accounts for 85 percent of the net income of SM’s property group, posted a 45-percent hike in its consolidated net income to P916.3 million for the first quarter of 2011, as against P632.4 million last year. Consolidated revenues reached P3.4 billion, 70 percent higher than that of last year.