SMIC H1 income up 13% to P10.9 B

MANILA, Philippines - SM Investments Corp. (SMIC), the listed flagship firm of retail tycoon Henry Sy, grew its first semester consolidated net income 13 percent to P10.9 billion as residential development, banks and retail operations continued to perform strongly.

SMIC booked revenues of P105.2 billion, 14 percent higher than the P92 billion recorded a year ago with all core businesses meeting their sales targets.

The banks accounted for the lion’s share of aggregate earnings with a 30.9 percent share, while the retail operations contributed 28.2 percent to the total. Malls came in third with 24.2 percent, followed by the property development with 16.7 percent.

EBITDA rose 12 percent to P24.1 billion for an EBITDA margin of 22.8 percent.

SMIC president Harley Sy said the group expects to sustain its upward momentum for the rest of the year on steady growth of its core businesses.

The retail group, which consists of a chain of department stores and a separate chain, reported a 7.8-percent hike in consolidated earnings to P2.7 billion as sales expanded by 8.3 percent to P73.8 billion. As of end June 2012, the number of stores reached 183 comprising 43 department stores, 34 SM Supermarket, 73 SaveMore Stores and 33 SM Hypermarkets.

Shopping mall unit SM Prime Holdings Inc. sustained its upward trajectory with net earnings rising 15 percent to P4.9 billion on the back of a 15 percent rise in revenues to P14.6 billion. It ended the first half with a total of 45 malls across the country with a total gross floor area of 5.5 million square meters. 

The four malls in China located in the cities of Xiamen, Jinjiang, Chengdu and Suzhou, reported a 52 percent jump in net income to P321 million equivalent to seven percent of SM Prime’s consolidated earnings. Revenues grew 30 percent to P1.3 billion, while the average occupancy rate for the four malls in China is now at 95 percent.BDO Unibank Inc. likewise reported a 15 percent rise in first half profit to P5.83 billion.   Last July 4, 2012, the bank executed a landmark deal raising P43.5 billion (equivalent to over $1billion) in core capital from a 1 to 3 rights offer to support its medium-term growth objectives and meet the Basel III capital requirements ahead of schedule.

Earnings of SM Land increased 37 percent to P3.2 billion on the back of a 59 percent hike in revenues, while residential development arm SM Development Corp. registered sales of P19.8 billion or an increase of 85 percent.

Total assets of SMIC improved 28% to P518.4 billion driven by growth in equity and fresh funds through borrowing, primarily from a five-year $250 million convertible bond (“CB”) issued earlier this year.

SMIC is currently focusing its attention on the recent calamity that hit many parts of Luzon last week.